# Presentation: 519498

## Reverse Auction

- What it is and How it can work for you.

## What is a Reverse Auction?

## •    A reverse auction is an on-line bidding process which allows vendors to bid as often as they wish during the auctioning period. Three or more vendors should be available to participate in a reverse auction.

## •   It is important to remember that a reverse auction is only a pricing tool.  It does not preclude any other aspect of the acquisition process.  It is simply a technique to capture the best pricing available at auction time. 

## •    Reverse auctions are secure, web-based, “downward price” auctions during which pre/post-qualified suppliers lower their prices real-time for Government products.  Reverse auctions are relatively new to the Federal government.  This procurement, bidding, and e-Gov tool appears to be best suited to buying a large volume of simple, well-defined, or standardized commodities. However, reverse auctions are consistent and compatible in making “best value” awards.   During an auction, bidders are aware of when the prices change; however, they do not know the names of their competitors.  The dynamic competition inherent in reverse auctions has resulted in pricing that is closer to that of the true market.  On average, reverse auctions result in a 10% to 24% price reduction over that of traditional pricing methods.

## What are the Roles and Responsibilities of Participants?

## NIH Reverse Auction Team

- Lead/Coordinate Effort
- Assist in Commodity Selection
- Assist in Enabler Selection
- Develop Specifications
- Monitor Reverse Auction
- Assist with any aspect of the acquisition process

## Enabler

-    	Coordinate Reverse Auction 					requirements with vendors
-    	Educate vendors to the Reverse Auction 		process
-    	Instruct vendors in Reverse Auction 			procedures
-    	Ensure vendor equipment is appropriate 		and properly connected
-    	Conduct a successful mock Reverse 			Auction
-    	Monitor/support the Reverse Auction
-    	Provide Reverse Auction documentation

## Vendors/Bidders

-  Abide by all conditions of the solicitation
-  Submit samples if applicable
-  Have proper web/internet connections
-  Be punctual
-  Abide by the rules of Reverse Auction
-  Participate in the instructional mock reverse auction
-  Participate in the live Reverse Auction

## Who makes up the NIH Reverse Auction Team?

- The NIH Office of Logistics and Acquisition Operations (OLAO) has various types of expertise and can assist or perform all aspects of the Reverse Auction for your organization.
- The OLAO staff includes:
-  Technical Specification Writers
-  Contracting Officers
-  Computer/Equipment Specialists
-  Certified Government Project Officers
- These proven capabilities are available to your organization and can be used in full or to supplement your existing staff and resources

## What type of Documentation do you get for your file when the Auction is over?

## The information listed in the slides to follow can be provided within days after the conclusion of the Reverse Auction. This “Reverse Auction Report”, or portions of it, may be useful to Contract Specialists, Purchasing Agents, and Program Officials for populating their acquisition files and planning subsequent actions.

##  	A Reverse Auction Summary generally 		contains the following types of information:

-  	A Reverse Auction Summary generally 		contains the following types of information:
- Vendors
- Date
- Time
- Number of extensions, if any
- Bid results/ranking

##  	Detailed vendors’ list including 		appropriate demographics

-  	Detailed requirements list
-  	Bidding History

##  	Price reductions as a result of the Reverse 	Auction

-  	Summary of vendor bids
-  	Connection log, demonstrating proof of on-	line capability

## Completed Reverse Auctions

## CUSTOMER:		Office of Logistics and Acquisition Operations
COMMODITY:		Handiwipes & Pipette Tips
DATE:			May 10, 2001
GOVERNMENT COST EST:	$1,363,448.00
COST SAVING% ACHIEVED:	29%
DECREMENT USED:		$0.01 (Handiwipe); N/A (Pipette Tip)
ACTUAL COST SAVINGS:	$395,400.00
ENABLER COST:		Gratis
ENABLER:			Oracle
LENGTH OF CONTRACT:		1 Base - 4 Options		Starting Price Used		
____________________________________________________________________________________

CUSTOMER:		Clinical Center
COMMODITY:		Paper Towels & Toilet Tissue
DATE:			December 14, 2001
GOVERNMENT COST EST:	$1,980,399.00
COST SAVING% ACHIEVED:	25%
DECREMENT USED:		$
ACTUAL COST SAVINGS:	$495,099.75
ENABLER COST:		$2,500.00
ENABLER:			CIS Global
LENGTH OF CONTRACT:		1 Base - 4 Options		Starting Price Used
____________________________________________________________________________________

CUSTOMER:		Food & Drug Administration
COMMODITY:		Copier Paper
DATE:			September 2, 2002
GOVERNMENT COST EST:	$1,297,302.00
COST SAVING% ACHIEVED:	16.70%
DECREMENT USED:		$500.00
ACTUAL COST SAVINGS:	$216,649.43
ENABLER COST:		$10,000.00
ENABLER:			CIS Global
LENGTH OF CONTRACT:		1 Base - 1 Option		Starting Price Used

**COMMODITY:****	****	****Handiwipes & Pipette Tips**
**DATE:****	****	****	****May 10, 2001**
**GOVERNMENT COST EST:****	****$1,363,448.00**
**COST SAVING% ACHIEVED:****	****29%**
**DECREMENT USED:****	****	****$0.01 (Handiwipe); N/A (Pipette Tip)**
**ACTUAL COST SAVINGS:****	****$395,400.00**
**ENABLER COST:****	****	****Gratis**
**ENABLER:****	****	****	****Oracle**
**LENGTH OF CONTRACT:****	****	****1 Base - 4 Options****	****	****Starting Price Used****	****	**
**____________________________________________________________________________________**
**CUSTOMER:****	****	****Clinical Center**
**COMMODITY:****	****	****Paper Towels & Toilet Tissue**
**DATE:****	****	****	****December 14, 2001**
**GOVERNMENT COST EST:****	****$1,980,399.00**
**COST SAVING% ACHIEVED:****	****25%**
**DECREMENT USED:****	****	****$**
**ACTUAL COST SAVINGS:****	****$495,099.75**
**ENABLER COST:****	****	****$2,500.00**
**ENABLER:****	****	****	****CIS Global**
**LENGTH OF CONTRACT:****	****	****1 Base - 4 Options****	****	****Starting Price Used**
**____________________________________________________________________________________**
**CUSTOMER:****	****	****Food & Drug Administration**
**COMMODITY:****	****	****Copier Paper**
**DATE:****	****	****	****September 2, 2002**
**GOVERNMENT COST EST:****	****$1,297,302.00**
**COST SAVING% ACHIEVED:****	****16.70%**
**DECREMENT USED:****	****	****$500.00**
**ACTUAL COST SAVINGS:****	****$216,649.43**
**ENABLER COST:****	****	****$10,000.00**
**ENABLER:****	****	****	****CIS Global**
**LENGTH OF CONTRACT:****	****	****1 Base - 1 Option****	****	****Starting Price Used**
- 							**	**** **

## CUSTOMER:		DHHS-wide
COMMODITY:		Copier Paper
DATE:			September 13, 2002
GOVERNMENT COST EST:	$6,171,400.00
COST SAVING% ACHIEVED:	17.50%
DECREMENT USED:		$1,000.00
ACTUAL COST SAVINGS:	$1,079,995.00
ENABLER COST:		$15,000.00
ENABLER:			CIS Global
LENGTH OF CONTRACT:		1 Base - 1 Option		Starting Price Used
__________________________________________________________________________________	
CUSTOMER:		Clinical Center
COMMODITY:		Can Liners & Bags
DATE:			January 9, 2003
GOVERNMENT COST EST:	$327,460.00
COST SAVING% ACHIEVED:	35.06%
DECREMENT USED:		$
ACTUAL COST SAVINGS:	$114,807.47
ENABLER COST:		$12,238.80
ENABLER:			Global e Procure
LENGTH OF CONTRACT:		1 Base - 4 Options		Starting Price Used
__________________________________________________________________________________

CUSTOMER:		Office of Logistics and Acquisition Operations
COMMODITY:		Shipping Boxes
DATE:			July 9, 2003
GOVERNMENT COST EST:	$266,139.00
COST SAVING% ACHIEVED:	9.26%
DECREMENT USED:		$665.00 (.25%)
ACTUAL COST SAVINGS:	$24,644.47
ENABLER COST:		$10,000.00
ENABLER:			Global e Procure
LENGTH OF CONTRACT:		1 Base - 2 Options		No Starting Price Used

**COMMODITY:****	****	****Copier Paper**
**DATE:****	****	****	****September 13, 2002**
**GOVERNMENT COST EST:****	****$6,171,400.00**
**COST SAVING% ACHIEVED:****	****17.50%**
**DECREMENT USED:****	****	****$1,000.00**
**ACTUAL COST SAVINGS:****	****$1,079,995.00**
**ENABLER COST:****	****	****$15,000.00**
**ENABLER:****	****	****	****CIS Global**
**LENGTH OF CONTRACT:****	****	****1 Base - 1 Option****	****	****Starting Price Used**
**__________________________________________________________________________________****	**
**CUSTOMER:****	****	****Clinical Center**
**COMMODITY:****	****	****Can Liners & Bags**
**DATE:****	****	****	****January 9, 2003**
**GOVERNMENT COST EST:****	****$327,460.00**
**COST SAVING% ACHIEVED:****	****35.06%**
**DECREMENT USED:****	****	****$**
**ACTUAL COST SAVINGS:****	****$114,807.47**
**ENABLER COST:****	****	****$12,238.80**
**ENABLER:****	****	****	****Global e Procure**
**LENGTH OF CONTRACT:****	****	****1 Base - 4 Options****	****	****Starting Price Used**
**__________________________________________________________________________________**
**CUSTOMER:****	****	****Office of Logistics and Acquisition Operations**
**COMMODITY:****	****	****Shipping Boxes**
**DATE:****	****	****	****July 9, 2003**
**GOVERNMENT COST EST:****	****$266,139.00**
**COST SAVING% ACHIEVED:****	****9.26%**
**DECREMENT USED:****	****	****$665.00 (.25%)**
**ACTUAL COST SAVINGS:****	****$24,644.47**
**ENABLER COST:****	****	****$10,000.00**
**ENABLER:****	****	****	****Global e Procure**
**LENGTH OF CONTRACT:****	****	****1 Base - 2 Options****	****	****No Starting Price Used**

## CUSTOMER:		Office of Logistics and Acquisition Operations
COMMODITY:		Surgical Mask
DATE:			July 31, 2003
GOVERNMENT COST EST:	$160,557.30
COST SAVING% ACHIEVED:	15%
DECREMENT USED:		$0.01
ACTUAL COST SAVINGS:	$24,083.60
ENABLER COST:		$4,000.00
ENABLER:			Procuri
LENGTH OF CONTRACT:		1 Base - 2 Options		No Starting Price Used
__________________________________________________________________________________

CUSTOMER:		Office of Logistics and Acquisition Operations
COMMODITY:		Surgical Gloves
DATE:			July 31, 2003
GOVERNMENT COST EST:	$341,155.58
COST SAVING% ACHIEVED:	16.3%
DECREMENT USED:		$100.00
ACTUAL COST SAVINGS:	$55,608.36
ENABLER COST:		$4,000.00
ENABLER:			Procuri
LENGTH OF CONTRACT:		1 Base - 2 Options		Starting Price Used
__________________________________________________________________________________

CUSTOMER:		Clinical Center
COMMODITY:		Toner Cartridges
DATE:			September 22, 2003
GOVERNMENT COST EST:	$504,952.53
COST SAVING% ACHIEVED:	59.35%
DECREMENT USED:		$250.00
ACTUAL COST SAVINGS:	$299,697.08
ENABLER COST:		$10,000.00
ENABLER:			Global e Procure
LENGTH OF CONTRACT:		1 Base - 1Option		No Starting Price Used

**COMMODITY:****	****	****Surgical Mask**
**DATE:****	****	****	****July 31, 2003**
**GOVERNMENT COST EST:****	****$160,557.30**
**COST SAVING% ACHIEVED:****	****15%**
**DECREMENT USED:****	****	****$0.01**
**ACTUAL COST SAVINGS:****	****$24,083.60**
**ENABLER COST:****	****	****$4,000.00**
**ENABLER:****	****	****	****Procuri**
**LENGTH OF CONTRACT:****	****	****1 Base - 2 Options****	****	****No Starting Price Used**
**__________________________________________________________________________________**
**CUSTOMER:****	****	****Office of Logistics and Acquisition Operations**
**COMMODITY:****	****	****Surgical Gloves**
**DATE:****	****	****	****July 31, 2003**
**GOVERNMENT COST EST:****	****$341,155.58**
**COST SAVING% ACHIEVED:****	****16.3%**
**DECREMENT USED:****	****	****$100.00**
**ACTUAL COST SAVINGS:****	****$55,608.36**
**ENABLER COST:****	****	****$4,000.00**
**ENABLER:****	****	****	****Procuri**
**LENGTH OF CONTRACT:****	****	****1 Base - 2 Options****	****	****Starting Price Used**
**__________________________________________________________________________________**
**CUSTOMER:****	****	****Clinical Center**
**COMMODITY:****	****	****Toner Cartridges**
**DATE:****	****	****	****September 22, 2003**
**GOVERNMENT COST EST:****	****$504,952.53**
**COST SAVING% ACHIEVED:****	****59.35%**
**DECREMENT USED:****	****	****$250.00**
**ACTUAL COST SAVINGS:****	****$299,697.08**
**ENABLER COST:****	****	****$10,000.00**
**ENABLER:****	****	****	****Global e Procure**
**LENGTH OF CONTRACT:****	****	****1 Base - 1Option****	****	****No Starting Price Used**

## 
CUSTOMER:		Office of Research Services
COMMODITY:		Bottled Water
DATE:			April 20, 2004
GOVERNMENT COST EST:	$1.4 Million
COST SAVING% ACHIEVED:	43%
DECREMENT USED:		$500.00
ACTUAL COST SAVINGS:	$605,000.00
ENABLER COST:		$10,000.00
ENABLER:			CIS Global
LENGTH OF CONTRACT:		1 Base - 4 Options		No Starting Price Used	
__________________________________________________________________________________

CUSTOMER:		Office of the Director
COMMODITY:		Box Delivery Trucks
DATE:			July 13, 2005
GOVERNMENT COST EST:	$356,830
COST SAVING% ACHIEVED:	34.7%
DECREMENT USED:		$100.00
ACTUAL COST SAVINGS:	$91,830.00
ENABLER COST:		$10,000.00
ENABLER:			e Federal Procure
LENGTH OF CONTRACT:		Single Buy			No Starting Price Used	
__________________________________________________________________________________

CUSTOMER:		Clinical Center 	
COMMODITY:		Trash can liners
DATE:			July 26, 2006
GOVERNMENT COST EST:	$614,257.50
COST SAVING% ACHIEVED:	25.97%
DECREMENT USED:		$    .10
ACTUAL COST SAVINGS:	$159,529.50
ENABLER COST:		$10,000.00
ENABLER:			Global eProcure
LENGTH OF CONTRACT:		1 Base - 4 options			 Starting Price Used

**CUSTOMER:****	****	****Office of Research Services**
**COMMODITY:****	****	****Bottled Water**
**DATE:****	****	****	****April 20, 2004**
**GOVERNMENT COST EST:****	****$1.4 Million**
**COST SAVING% ACHIEVED:****	****43%**
**DECREMENT USED:****	****	****$500.00**
**ACTUAL COST SAVINGS:****	****$605,000.00**
**ENABLER COST:****	****	****$10,000.00**
**ENABLER:****	****	****	****CIS Global**
**LENGTH OF CONTRACT:****	****	****1 Base - 4 Options****	****	****No Starting Price Used****	**
**__________________________________________________________________________________**
**CUSTOMER:****	****	****Office of the Director**
**COMMODITY:****	****	****Box Delivery Trucks**
**DATE:****	****	****	****July 13, 2005**
**GOVERNMENT COST EST:****	****$356,830**
**COST SAVING% ACHIEVED:****	****34.7%**
**DECREMENT USED:****	****	****$100.00**
**ACTUAL COST SAVINGS:****	****$91,830.00**
**ENABLER COST:****	****	****$10,000.00**
**ENABLER:****	****	****	****e Federal Procure**
**LENGTH OF CONTRACT:****	****	****Single Buy****	****	****	****No Starting Price Used****	**
**__________________________________________________________________________________**
**CUSTOMER:****	****	****Clinical Center**** ****	**
**COMMODITY:****	****	****Trash can liners**
**DATE:****	****	****	****July 26, 2006**
**GOVERNMENT COST EST:****	****$614,257.50**
**COST SAVING% ACHIEVED:****	****25.97%**
**DECREMENT USED:****	****	****$    .10**
**ACTUAL COST SAVINGS:****	****$159,529.50**
**ENABLER COST:****	****	****$10,000.00**
**ENABLER:****	****	****	****Global eProcure**
**LENGTH OF CONTRACT:****	****	****1 Base - 4 options****	****	****	**** Starting Price Used**

## 

TOTAL COST SAVINGS ACHEIVED:	$3,564,344.66

http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/ 

**TOTAL COST SAVINGS ACHEIVED:****	****$3,564,344.66**
- _[http://www.](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[olao](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[.](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[od](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[.](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[nih](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[.](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[gov/Acquisitions/PlanningAndSupport/](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)__[ ](http://www.olao.od.nih.gov/Acquisitions/PlanningAndSupport/)_