Reverse auction
In a reverse auction, sellers bid prices down in real time and can see the current low price, not who offered it.
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Definition
In a reverse auction, sellers bid prices down in real time and can see the current low price, not who offered it. Federal use is governed by FAR Subpart 17.8, which bars reverse auctions for design-build construction and architect-engineer services.
How it differs
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vs. Sealed bidding
Sealed bids are submitted once, in secret; reverse-auction bids can be lowered repeatedly while the auction is open. What is Sealed bidding?
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Questions
What does "reverse auction" mean in procurement?
In a reverse auction, sellers bid prices down in real time and can see the current low price, not who offered it. Federal use is governed by FAR Subpart 17.8, which bars reverse auctions for design-build construction and architect-engineer services.
What is the difference between Reverse auction and Sealed bidding?
Sealed bids are submitted once, in secret; reverse-auction bids can be lowered repeatedly while the auction is open.