Is your business certified as a GSA schedule contract holder? Then, you must be benefitting from host of opportunities provided to a GSA contractor usually gets to benefit from. Among several others, a GSA certified business can benefit from participating in ‘reverse auctions’ – an opportunity that hardly exist outside the federal marketplace.
Let us take a quick look at what ‘reverse auctions’ actually are. Now, we have all known what an open market auction is. In a general competitive bidding process, sealed bids are accepted from interested bidders (companies) looking to grab a lucrative deal, a contracting job opportunity and so on. After the acceptance of all bids, the company conducting the bidding process would open all the bids maintaining secrecy. The highest bidder gets the item/product which is being auctioned through closed bids. Now, that’s’ the usual scenario for auctions. And by the way, in competitive bidding, the bidders can never know the bid amounts of other bidders. In case of ‘reverse bidding’ the situation is stark opposite. Here instead of bidding for the highest value, the bidders bid for the lowest value. This means, the bidder with the lowest bid amount becomes triumphant. Moreover, in case of reverse auctions, the bidders can know the lowest submitted bid amount in real-time through online bidding platform. GSA Advance provides businesses with guidelines on ‘reverse bidding,’ which is an exclusive feature of GSA schedule holders.
Do you know that a host of federal government run agencies and departments actually conducts hundreds of ‘reverse auctions’ every year? In fact, you’ll be amazed to note that in the year 2011 the U.S Department of Homeland security had alone conducted over 2,000 ‘reverse auctions’ to solicit GSA contractors to come and sell their products to them. Getting a boost from this, the GSA itself launched its own ‘reverse auction’ platform in July of 2013. Through this very platform all the federal agencies and other government ordering departments can conduct their very own ‘reverse auctions’.
Do not think that both are the same! A GSA reverse bidding process is different from that of an ‘open market’ bidding in that, a federal agency (buyer) participating in GSA’s reverse bidding platform cannot buy or even procure products from open bidding events with the intention of purchase.
Businesses taking consultation from Advancegsa or GSA Advance in order to get approved for GSA schedule contract can learn all about reverse bidding from the GSA consultant organization. In due course they should gain prowess to run their own ‘reverse bidding’ programs. To learn more about GSA Advance and many benefits of GSA schedule contract keep following our blog posts.