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How e-auctions work
E-auctions are also referred to as reverse auctions in which suppliers offer progressively lower bids in order to win a contract; these have been used by procurement specialists since 1995. E-auctions are different from conventional tendering processes as they are conducted online and allow bidders to see the most competitive bid, and to re-bid in response. Bidders are all pre-qualified and quality scores are typically built into the auction process as bid weightings. Bidding may last a few minutes, or many hours.
OGC has developed e-auction tools and guidance to help manage an e-auction:
OGC and Buying Solutions working closely with central government departments review all opportunities to use e-auctions as part of new procurements or mini-competitions on frameworks. Future e-auction dates can be found in the Schedule of e-auctions.
Benefits of using e-auctions
When managed well, e-auctions help to deliver very competitive contracts, which are both commercially sustainable and provide high quality goods and services.
Additional benefits from using e-auctions are: