GSA’s reverse auctions help the agency fulfill its mission to deliver the best value and savings for the American taxpayer. When you’re bidding on the electricity used throughout Texas for the next five years, every penny matters. GSA’s Greater Southwest Region’s Energy & Acquisitions Support Branch used a reverse auction to provide the most cost-effective solution for purchasing electricity for GSA-owned and -operated buildings in the deregulated areas of Texas.
In a reverse auction, sellers compete to win business from agencies; prices will typically decrease as the competitive auction progresses. GSA’s new reverse auction platform reduces federal agencies’ acquisition processing time and costs, drives prices and costs down, improves transparency and collection of data, and allows for small business set-asides.
The deregulated Texas utility procurement was held in May, and because the Energy & Acquisitions Support Branch team was able to use GSA’s Reverse Auction App, it resulted in 50 percent renewable energy across the board, and an estimated savings of $33 million over five years.