EAuctions

From Buyers 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. There are many benefits for buyers by using an eAuction. After the initial time spent and cost of the set up activities, such as preparing a product specification and recruiting suppliers, an eAuction can provide a streamlined process with a short negotiation cycle and transparency to all parties involved. [2]

The competitive environment that the eAuction creates encourages competition with the result that goods and services are offered at their current market value, which is good news for Buyers with a restricted budget. [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. [4]