Government Backs Out of Reverse Auctions
Sunday September 10, 2006
Public Works Minister Michel Fortier has announced that reverse auctions are no longer part of the federal government's plans for modernizing the way the government buys goods and services. Government suppliers from a variety of industries have been upset since they heard that A. T. Kearney Ltd., the consulting firm overhauling the federal procurement process, was recommending using reverse auctions to buy common goods and services. In reverse auctions, the low bidders on a contract face off in a live auction in which prices go down even farther. The federal government is still aiming to save $2.5 billion in procurement costs over five years.
More on Reform of Government Purchasing
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More on Reform of Government Purchasing
Builders Told to Snub Government Lowest Bid Game - The Ottawa Citizen
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Comments
The probable reason is to protect the suppliers. But this will only drive the cost up for the Canadian Government ( in two ways). They will be buying products for higher prices then if they used reverse auctions, and second the procurement process is going to take more time and therefore more expensive for the taxpayers. US local, state and federal Government are leading the way on reverse auctions in North America and soon other major corporations and business will follow. check this out www.oltiby.com
I did tried this reverse auction plateform last month and I had a successful lead for buying a DVD. It’s a small item but I enjoyed the site. It is free to register and post, and you don’t pay anything if you don’t get any results and savings of course, that’s the point of reverse auctions!!