Definition of an electronic reverse auction

(1) An electronic reverse auction (electronic reverse auction) can be defined as an online, real time dynamic auction between a buying organization and a number of suppliers who compete against each other to win the contract by submitting successively lower priced or better ranked bids during a scheduled time period.

As offers are changed during an electronic reverse auction, this provision is inconsistent with the conduct of an auction.

Article 47 ter. Conduct of electronic reverse auctions during the auction itself

Article 47 bis provides that the electronic reverse auction is to be suspended abrogated should the number of bidders drop below that minimum before the opening of the electronic reverse auction itself.

An electronic reverse auction (ERA) can be defined as an online, real time dynamic auction between a buying organization and a number of suppliers who compete against each other to win the contract by submitting successively lower priced bids during a scheduled time period.

Article 47 bis. Conduct of electronic reverse auctions in the pre auction period

(ii) The date and time of the opening of the electronic reverse auction

Article 47 bis. Conduct of electronic reverse auctions in the pre auction period

OGC launched Reverse Auction Framework (RAF, available at http www.ogcbuyingsolutions. gov.uk RAF default.asp.

(i) The date and time of the opening of the electronic reverse auction

See article 1(7) of EU Directive 2004 18 EC that defines reverse auction .

Consequently, as tendering is the general procurement method for goods and construction, the provisions enable an electronic reverse auction procedure that follows the pattern of the standard tendering method, adapted to provide for an electronic reverse auction.

According to economic analysis, there is no difference in results between traditional and reverse auction formats.

(iii) The website address at which the electronic reverse auction will be held, and at which the auction rules, the tender and other relevant documents will be accessible

(ii) The website address at which the electronic reverse auction will be held, and at which the auction rules, the tender and other relevant documents will be accessible

(3) The procuring entity may suspend the electronic reverse auction in the case of system or communications failures.

See, e.g., the Administrative guidelines for assisted reverse auction event of the Ministry of Defense (the Singapore guidelines ).

(j) The place and deadline for the submission of tenders or, if the tendering proceedings are to be conducted by way of an electronic reverse auction pursuant to article 47 bis and ter, the date and time of the opening of the electronic reverse auction.

See, e.g., Feldman S. W., Government contract awards negotiation and sealed bidding 16 18.10, Revealing prices without permission , March 2004 (available on Westlaw) Whiteford, Agencies celebrated the auction prohibition's demise, as demonstrated by their use of the reverse online auction technique and a special notice of the administrative councils that publish the Federal Acquisition Regulation, 2000.

(5) Paragraph 2 (c) protects the anonymity of the bidders prior to the closure of an electronic reverse auction.

(5) The procuring entity shall allow a period of time to elapse between the issuance of the invitation to participate in the electronic reverse auction and the opening of the auction sufficient so as to ensure sufficient participation in the auction.

See Emiliani M. L. and Stec D. J., Aerospace parts suppliers' reaction to online reverse auctions .

There are no definitions of the terms electronic , reverse , and auction provided for in the draft articles of the Model Law.

A pre qualification phase also enables the number of participants to be invited to the electronic reverse auction to be assessed.

In practice, the greater the value and complexity of the procurement, the longer the normal duration of the electronic reverse auction.

For a review of the procedures used in launching such a reverse auction, see http www.r8.gsa.gov FTSWeb.nsf 0 def311033320029b87256c07004811b0?OpenDocument.

Proposed revisions to article 34(8) of the Model Law, to permit the disclosure of information during an electronic reverse auction

(5) In order to minimize the risk of collusive practices, including price signalling, and to preserve bidders' anonymity during the electronic reverse auction, enacting States may wish to specify the minimum number of suppliers or contractors in the appropriate market that are anticipated to participate in the electronic reverse auction .

See also Nash R. C. and Cibinic J., Reverse auctions more thoughts, Nash Cibinic Report (West Group, December 2000), vol. 14, No. 12, p. 67 ( It seems that the computer software marketing people are launching a full force attack on Government procurement offices pushing the reverse auction' online bidding software programs that they developed for use in the commercial world. )

It was also observed that if suppliers could withdraw their bids before the electronic reverse auction itself, the impact on the level of competition that would be required for an effective auction should be considered.

See Stein A. and Hawking P. Reverse auction e procurement a suppliers viewpoint, available at http ausweb.scu.edu.au aw02 papers refereed stein paper.html.

The Working Group may wish to consider whether the procuring entity should be required to state in the invitation to tender, or the invitation to prequalify as the case may be, that an electronic reverse auction will be held, as a condition of using the electronic reverse auction as a method of procurement.

(1) The electronic reverse auction is to be conducted as a tendering procedure, and accordingly the provisions of chapter III of the Model Law apply unless they are inconsistent with the nature of an auction procedure.

In the practice of many countries, procuring entities retain broad flexibility to suspend reverse auction procedures and fix the time frame of suspension.

(d) bis Whether the tendering proceedings shall be conducted by way of an electronic reverse auction pursuant to article 47 bis and ter a

(2) In any procurement by means of an electronic reverse auction, the procuring entity shall may engage in prequalification proceedings in accordance with article 7 .

(i) bis In procurement proceedings involving the use of a procurement method pursuant to article 19 bis, the fact that electronic reverse auction was held.

The information concerned is the same as that proposed regarding in the invitation to participate in the electronic reverse auction under draft article 47 bis.

An auction with such a criterion would be a Model 2 electronic reverse auctions as described in paragraph 33 of A CN.9 WG.I WP.35.

Accordingly, the Working Group decided that neither construction nor services procurement in their entirety should be excluded from the provisions governing electronic reverse auctions, pending further deliberations as to which type of procurement would be suitable for electronic reverse auction.

The description of an electronic reverse auction assumes that all participants will use electronic means of communication in the auction itself (see para. 23 of A CN.9 WG.I WP.38, the drafting suggestions following which allow the compulsory use of electronic means of communication).

(b) Where there is a competitive market of at least ten suppliers or contractors that are anticipated to be qualified to participate in the electronic reverse auction and

(n) bis Where the tendering proceedings are to be conducted by way of an electronic reverse auction pursuant to article 47 bis, a statement to such effect, and

Proposed revisions to article 25 of the Model Law, to require the invitation to tender and invitation to prequalify to state whether an electronic reverse auction will be held