Officials intend for the new service to increase opportunities for small businesses to bid on government business and improve transparency, GSA said Tuesday.
“Reverse auctions can drive down prices paid, reduce the total cost of acquisitions, and save time and precious acquisition resources for both government and industry,” said Thomas Sharpe, commissioner of the Federal Acquisition Service.
In a reverse auction, vendors compete to obtain business from an agency by lowering the prices of their offerings as bidding progresses.
Agencies can also utilize the web tool f0r certain multiple award schedules and blanket purchase agreements, GSA says.
The agency also noted that federal customers have saved up to 17 percent through reverse auctions.