How Some Federal Agencies Are Cutting Contract Costs: Reverse Auctions Come to the Fore

Posted on August 24, 2010


The following is the first in a series of excerpts from David Wyld’s Blog The Reverse Auction Research Center. David will be a guest on the PI Window on Business Show on September 7th, 2010 at 12:30 PM EST to talk about the evolution of Reverse Auctions including their viability as a procurement tool in today’s increasing globalized marketplace.

How will federal agencies be able to meet President Obama’s goal to streamline federal procurement and introduce “full and open competition” into the process? How will the cabinet departments be able to meet the Office of Management and Budget’s (OMB’s) directive to save tens of billions of taxpayer dollars in contracting by 2011? Quite obviously, even without a central mandate to use reverse auctioning, individual agencies are taking the lead in examining their own procurement spending, and through the efforts of innovative leaders, we are seeing not just impressive dollar savings, but increased competition and process improvements being introduced into the world of federal procurement.

In this Federal Times article (“How some agencies are cutting contract costs” How some agencies are cutting contract costs –, Tom Spoth outlines the impressive efforts that have occurred to date in regards to making reverse auctioning a first choice for procurements of both goods and services in two agencies:

  • The National Nuclear Security Administration (NNSA), and
  • The Department of Homeland Security (DHS)

As Spoth details, both agencies have saved tens of millions of dollars through reverse auctions in the current fiscal year, and their efforts should serve as case studies for the potential savings and efficiencies that can be achieved if reverse auctioning is strategically applied across the entire federal procurement landscape.


From the Reverse Auction Research Center:

About Today’s Guest Expert:

David Wyld

David C. Wyld ( currently serves as the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a noted expert on reverse auctions and e-procurement topics, being widely published on the topic and a recognized expert/consultant in the area. Dr. Wyld is the Founder and Director of the Reverse Auction Research Center.

NOTE: This post also appears in the new Contracting Intelligence Blog.