EAuctions

From Suppliers Manual

eAuctions are usually reverse auctions which means, instead of the traditional auction method of the bid price increasing, suppliers bid progressively lower during the auctions period. An eAuction is a means in which pre-qualified suppliers can bid electronically for a contract. [1]

When managed well, eAuctions help to deliver very competitive contracts which are both commercially sustainable and provide high quality goods and services to the buyer. [2]

There many benefits for suppliers by using an eAuction. It can reduce paper work, shorten the procurement cycle and increase the transparency of competing bids. Negotiation with the buyer can be a lengthy process that can take weeks in complex projects and is costly for both the buyer and supplier, so by conducting contract negations online this process can be significantly reduced. eAuctions allow the competition of goods and services to be viewed in real time via the internet therefore details of the lowest bid can always be viewed so the supplier does not miss out. Market transparency also benefits the supplier by revealing the market rate of their competitors. [3]

When stated in the Official Journal of the European Union (OJEU) Contract Notice, an eAuction may be used in conjunction with open or restricted procedures. It can also be used in circumstances where open, restricted or competitive dialogue procedures cannot be brought to a satisfactory conclusion and the negotiated procedure with publication of a contract notice is adopted. It may also be used on the reopening of a competition within a framework agreement (a mini competition) and on the opening to competition of contracts to be awarded through a dynamic purchasing system as long as the intention to use them was stated in the original contract notice.

An eAuction is not just limited to award the contract based on price alone, regulations specify that before an eAuction the buyer will make an initial evaluation and short list suppliers on the basis of the original specified award criteria. Even the eAuction itself is not limited to select the successful supplier on price alone. [4]