Anne Rung, administrator of the Office of Federal Procurement Policy, has issued new guidance on how agencies should use reverse auctions to drive price reductions, competition and small business participation.
In a memo sent June 1 to chief acquisition officers and senior procurement executives, Rung said that the guidance is in response to a recommendation by the Government Accountability Office to help agencies realize the value of reverse auctions.
She urged agencies to consider if the program requirements fit the use of a reverse auction, collect and review data on previous usage, maximize the opportunity for small business participation, apply internal controls, gather vendor feedback, train and equip the workforce and review existing policies and practices on reverse auctions.
The guidance also listed factors such as fees, government contracting official responsibilities and contract data information as additional considerations if the agency is using a third-party contractor to hold reverse auctions.
Rung also encouraged agencies to work with OFPP on the evaluation of reverse auction results in order to address potential areas for improvement.