Army advances reverse auction
- By George I. Seffers
- May 30, 2000
Taking reverse auctions one step further, the Army's Communications-Electronics
Command has tested online procurement software that searches for more information
and performs an analysis of the seller.
Cecom , Fort Monmouth, N.J., announced May 25 that it had tested the
reverse auction process, in which contractors jockeyed to provide the lowest
price. The test included the online purchase of two items: a fax machine
and a laptop computer.
Up to now, other military organizations have conducted reverse auctions
online with price as the only factor. But Cecom used software from Frictionless
Commerce Inc. that selects the seller with the lowest price and then searches
the World Wide Web to locate similar requirements, ensuring that volume
discounts are applied to the final purchase price.
Furthermore, the software has a built-in value analysis capability that
analyzes the sellers, their prices, their performance and their compliance
with previous contractual agreements, such as differing capabilities for
varying brands of equipment, said Tom Clarkson, Cecom spokesman.
The online auction resulted in an approximate 50 percent savings, Clarkson