Bidding for Savings: Reverse Auctions Gain New Favor
October 31, 2011
This may be the season for reverse auctioning—especially at a time when agencies are scavenging to survive because money is so scarce.
The online bidding process where price is driven down by companies competing for the work could leave an agency's acquisition workforce with more time and the department with more money, according to a new report.
"Reverse auctions are indeed coming of age in both the private and public sectors, as organizations are rapidly discovering that [the reverse auctions] can be a 'faster, better, cheaper' method of procurement," wrote David Wyld, professor of management and director of the College of Business' Strategic e-Commerce/e-Government Initiative at the Southeastern Louisiana University in Hammond, La., in a report released Oct. 20.