Agencies are old hands at auctioning surplus equipment to private companies, individuals and even foreign nations. But reverse auctions are very different. In the new approach, companies bid against each other in real time to win government contracts.
Competition is critical.
Reverse auctions and supply lists are a marriage made in heaven. Reverse auctions bring competition to these lists. Oscar and procurement lawyer Carl Peckinpaugh, chief counsel for DynCorp, told government contracting officials that reverse auctions are not prohibited under the Federal Acquisition Regulation. Agencies that have experimented with the tool have met with considerable savings. But now I believe that it is an appropriate pricing tool.