GSA’s New England Region Natural Gas Acquisition Program (NGAP) held competitive reverse auctions recently in Connecticut and Massachusetts for natural gas supply that will save the U.S. Bureau of Prisons, the Department of Veterans Affairs, GSA, National Park Service, American Red Cross, US Coast Guard, and the Department of the Army $767,000 annually over the next three years. Thanks to this innovative solution, GSA will save government agencies millions of dollars.
How does a reverse auction work? A reverse auction occurs when vendors bid each other to sell a product – in this case, natural gas – to the federal government. Last month, twenty-four separate auction events were held to solicit pricing for multiple facilities, allowing property managers to choose the best price and terms based on bid results.This kind of auction gets the best savings for the government and, ultimately, for you the American taxpayer. The successful collaboration will help the region realize an average natural gas supply rate reduction of 26 percent for GSA facilities.
To take advantage of trends in the market, NGAP held 14 competitive auctions across the nation this fiscal year, cutting costs for twenty-nine federal agencies. The reverse auctions are part of GSA’s core mission of providing the best value and promoting efficiency government-wide.