Innovations in Defense Acquisition Auctions: Lessons Learned and Alternative Mechanism Designs

摘要

Since 1997, the Department of Defense (DoD) has shown increasing interest in using reverse auctions, particularly electronic reverse auctions, to purchase a wide range of products and services. The research describes DoD's experience with acquisition auctions, identifying the characteristics of the buyers, sellers, and the products/services exchanged through auctions. In general, reverse auctions have been limited to procurement actions involving relatively standard price-driven commercial products-products typically purchased through traditional competitive markets. It appears that DoD has substituted reverse auctions for the market research required in the standard DoD procurement processes; the auction service providers are replacing federal procurement agents in advertising the procurement action and soliciting bids from competing suppliers.