In a report on Reverse Auctioning from the IBM Center Professor David C.Wyld describes the increasing use of reverse auctions by government at all levels across the world and the potential savings.
Wyld estimates that the federal government could save $8.9 billion by increasing the use of reverse auctions. Wyld’s research estimates that the Department of Defense alone could save nearly $6.1 billion by increasing its use of reverse auctions. In addition to cost savings, the Wyld case study of the Department of State demonstrates that reverse auctions substantially increased competition among suppliers and saved departmental contract staff substantial time.
Professor Wyld’s Recommendations
While the value of reverse auctions for government is clear, their use in government has still been limited. For this to change, Wyld recommends that departmental chief acquisition officers be assigned responsibility for taking the lead and making procurement savings and efficiencies a strategy priority for their organizations, with reverse auctions a central focus of that effort. Wyld recommends intensive staff training and change management initiatives as government implements new and innovative approaches to procurement. In his report on Reverse Auctioning he also outlines a total of 14 recommendations for putting the power power of reverse auctioning to work for government organizations, their acquisition staff, and most important, for the American public.
Source: IBM Center for the Business of Government
David C. Wyld