Customizable Platform Delivers Savings on Commonly Purchased Goods and Simple Services
Over the past year, GSA’s government-developed and managed reverse auction platform (ReverseAuctions.gsa.gov) has seen amazing growth, with usage surging over 1000 percent from the first quarter of FY14 compared to first quarter of FY15. During that period, auction sales jumped from $737,000 to $10.8 million, with the total awarded auctions for small and large businesses equaling $24 million . GSA’s reverse auction platform is available for use by federal, state, and local government under the authorities of the Cooperative Purchasing and Disaster Purchasing Programs and delivers increased savings on the most commonly purchased products, equipment, and simple services, while also making it easier for small businesses to compete.
“This government-run reverse auction tool is a fantastic innovation for GSA’s customers, and we expect it will continue to drive even more savings and speed into the acquisition process,” said FAS Commissioner Thomas A. Sharpe, Jr.
In a reverse auction, sellers compete to win business from agencies, with prices decreasing as the competitive auction progresses. Overall, reverse auctions saved 23 percent off the independent government estimate (IGE) of goods and services, while also improving transparency, collection of data, and reducing acquisition processing time and costs.
GSA customers are pleased with their results. “What a great tool!” said a contracting officer with the United States Marshals Service, Financial Services Division. “The GSA Reverse Auction team provides great customer service and support. The overall process of setting up the auction was extremely simple and the tool is easy to use. We were able to award to multiple small businesses and realized a cost savings of almost 20 percent through our reverse auction.”
Small businesses and taxpayers have benefited the most from the Reverse Auction program. Even though 60 percent of auctions had been set aside for them, 85 percent of the auctions (more than $22 million) awarded through the initiative went to small businesses. Since the GSA Reverse Auctions tool was released, 22 government agencies have created over 900 auctions and saved more than $6.8 million.
According to Commissioner Sharpe, continued Innovation is the key to growth for GSA’s Reverse Auction platform. “Now that we’ve shown customers they can save time and money with GSA’s reverse auction platform, we’re talking with them about how we can address their specialized needs. Everyone needs to know that we can provide customized solutions for their reverse auctions.”
GSA Reverse Auction Performance Results From July 1, 2013 Launch-January 31, 2015
- 22 agencies across government created over 900 auctions and saved more than $6.8 million
- While 60 percent of the auctions were set aside for small business, agencies awarded more than 85 percent ($22 million) of the procurements to small businesses
- $24 million in awarded auctions
- GSA’s Reverse Auction Platform generated 22 percent savings off Independent Government Cost Estimates and 29 percent savings against the highest bid
- Total FY14 savings for agencies equaled 23.58 percent
GSA Reverse Auction Benefits
- No additional fee charged for products and services purchased on GSA vehicles
- Streamlines procurement cycle time
- Direct buyer and vendor communication
- Successful interactive bidding auction process
- Available to state and local government pursuant to Cooperative Purchasing Program