GSA challenges FedBid's auction business
The General Services Administration has launched its own reverse auction site, setting up direct competition with FedBid, a pioneer of the concept.
Now that the GSA has introduced ReverseAuctions, a program that allows agencies to make purchases via online auction, FedBid Inc. has some real competition, according to FedBiz Daily.
The GSA’s ReverseAuctions is similar to eBay, having a set amount of time that companies can put in their bids; however, unlike eBay, the bids are for lowest price, and not the other way around.
FedBid had been dominant in the market, facilitating more than 20,000 transactions worth more than $1.4 billion in 2011, FedBiz Daily reported, but now it is competing directly with the GSA’s platform.
FedBid’s advantage might be with how it doesn’t restrict which goods and services can be procured; the GSA, on the other hand, keeps it to commodities, such as office supplies and equipment.
NEXT STORY: Nick's picks for June's top stories