(1) During 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.

In the past few years mobile reverse auction have evolved.

OGC launched Reverse Auction Framework (RAF, available at http www.ogcbuyingsolutions.

A reverse auction is a type of auction in which the roles of buyer and seller are reversed.

Dozens of competing start up reverse auction service providers and established companies such as General Motors (an early FreeMarkets customer) and SAP, rushed to join the reverse auction marketspace.

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

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.

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

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.

(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

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

(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.

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

The Working Group may wish to consider whether any definition of an electronic reverse auction in the text of the Model Law is necessary, or whether the definition proposed in the Guide to Enactment text will be sufficient. The description of an electronic reverse auction assumes that all participants will use electronic means of communication in the auction itself (see para.

In addition to items traditionally thought of as commodities, reverse auctions are also used to source buyer designed goods and services and they have even been used to source reverse auction providers.

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.

(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 .

(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.

The reverse auction process would then be used to obtain bids on the incentives needed to reduce animal numbers from this initial baseline.

(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 .

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.

B2G networks provide a platform for businesses to bid on government opportunities which are presented as solicitations in the form of RFPs in a reverse auction fashion.

(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

If the number of suppliers or contractors qualified to participate in admitted to that have registered to participate in the auction falls below number is in the opinion of the procuring entity insufficient to ensure effective competition , the procuring entity shall withdraw the electronic reverse auction .

In electronic reverse auctions conducted under the Brazilian system, there is no qualification phase until after the closure of the auction, so as to save the time and costs involved in a pre auction qualification phase that could involve the qualifications of many suppliers being assessed.

It was noted that the draft text enabled the number of participants invited to participate in the auction to be restricted, and that the Guide to Enactment should note that the conditions of use for restricted tendering would normally not apply to procurement suitable for an electronic reverse auction.

(4) There shall be no communication between the procuring entity and suppliers or contractors during the electronic reverse auction other than as provided for in paragraphs 1 (b) and (c) above.

Auction stage

Post auction

The sections below address aspects of pre auction, auction and post auction stages commonly regulated by ERA specific provisions of existing regulations.

(4) (e) Unless already provided to suppliers or contractors, the invitation to participate in the electronic reverse auction shall include the following information the items set out in article 27 (n) bis, and

As regards paragraph 6 of the proposed draft article, the electronic reverse auction normally identifies only the best bid, and not (unless specifically requested) the best bids that other participants could have offered.

As regards paragraph (1) (c), it was agreed that the main issue for consideration was whether the price alone, or price and other evaluation criteria should be subject to the electronic reverse auction.

In addition, as the digital divide in some countries was closing rapidly, consumers were becoming more vulnerable to such crimes as tele marketing fraud, phishing and online auction fraud.

It was agreed that the criteria issue would also determine the complexity of the electronic reverse auction, and the Working Group decided that its deliberations on the question should continue at its next session.

Pre auction stage

Invitation to auction

In 2004, the White House Office of Federal Procurement Policy (OFPP) issued a memorandum encouraging increased use of commercially available online procurement tools, including reverse auctions.