WT Business Beat

By Nick Wakeman

Blog archive
Nick Wakeman

Is GSA reinventing the wheel with reverse auction plan?

As I read the General Services Administration’s announcement on the launching of a reverse auction site, I couldn’t help but scratch my head and wonder why.

Don’t get me wrong, the reverse auction concept has a lot of merit. For the right products, it’s a smart way to go. For the uninitiated, a reverse auction is where a buyer posts a need, and sellers bid to provide that service. The process drives down prices.

Reverse auctions are a great idea, but my question is why is GSA building one when there are commercial auction platforms available?

FedBid.com is well known in the government market but they aren’t the only reverse auction platform out there. I counted at least 12 others in the first two pages of a Google search using the term "reverse auction platforms."

With that many commercial providers, it begs the question, why do we need a government built and managed platform?

I reached out to FedBid to get a reaction and they said they were still studying the announcement and declined to comment further. They probably have to tread a fine line because I’m sure a lot of their business comes through GSA.

In reading the announcement on the launch of the platform, GSA speaks like it invented the concept when in reality, the value of reverse auctions has been proven over and over again by FedBid and other private sector companies. FedBid claims on its website to have worked with 60,000 sellers and 15,000 buyers.

In today’s environment, shouldn’t GSA spend its precious resources on something else when the services and technology is so readily available and being successfully used in the private sector?

Why build something that so directly competes with what companies currently are providing?

Why not spend that development money on other needs, such as training and education, to improve procurements?

I’m sure there are other priorities for the resources than reinventing the wheel.

Posted by Nick Wakeman on Jul 11, 2013 at 7:35 AM


Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts

  • How Do You Support the Project Lifecycle?

    How do best-in-class project-based companies create and actively mature successful organizations? They find the right mix of people, processes and tools that enable them to effectively manage the project lifecycle. REGISTER for this webinar to hear how properly managing the cycle of capture, bid, accounting, execution, IPM and analysis will allow you to better manage your programs to stay on scope, schedule and budget. Learn More!

  • Sequestration, LPTA and the Top 100

    Join Washington Technology’s Editor-in-Chief Nick Wakeman as he analyzes the annual Top 100 list and reveals critical insights into how market trends have impacted its composition. You'll learn what movements of individual companies means and how the market overall is being impacted by the current budget environment, how the Top 100 rankings reflect the major trends in the market today and how the biggest companies in the market are adapting to today’s competitive environment. Learn More!