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GAO: Agencies Need Guidance to Utilize Reverse Auctions

GAOThe Government Accountability Office has recommended that federal procurement rules should be amended in order for agencies to better utilize reverse auctions.

GAO said in a report published Monday that the departments of the Army, Veterans Affairs, Interior and Homeland Security increasingly use reverse auctions to buy products such as information technology equipment and medical supplies.

However, most of the auctions examined by GAO resulted in contract awards worth $150,000 or less and a large number of contracts awarded to small businesses.

The report also found that the four departments have picked the same commercial services provider to help with their auctions.

GAO advised the Office of Management and Budget to establish government-wide guidelines to help agencies maximize competition and savings when purchasing through reverse auctions.

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