News | July 26, 2018

Aviation buyers use reverse auctioning to save taxpayer money

By Leon Moore DLA Aviation Public Affairs

More than 50 people attended one of three Defense Logistics Agency Aviation reverse auctions training sessions held in the McKeever Auditorium on Defense Supply Center Richmond, Virginia, July 19. Dozens more from around the DLA Enterprise caught the training via video teleconferencing.

 

The sessions focused on highlighting the key functionality and look of the new Procurex/DLA Reverse Auction Platform, giving a better understanding of more complex platform functionality and a solid foundation to build and run reverse auction events.

 

DeVora Seymore, procurement analyst, Programs Division, Procurement Process Support Directorate, DLA Aviation, helps manage the Reverse Auction Program for DLA Aviation.

 

She said reverse auction is a computer software pricing tool that allows defense contractors to submit real-time, electronic bids in response to competitive solicitations. This pricing technique is used by buyers during discussions to establish the final offered price(s).

 

“This tool is beneficial for buyers because it allows negotiations to take place electronically, eliminating the need to send numerous emails or make various phone calls to contractors to negotiate prices.

 

Seymore said buyers can work on other procurement actions while their auction(s) are taking place. In addition, they can have multiple auctions taking place at the same time.

 

Michael MacKinnon, vice president of business development for Procurex, developers of the reverse auction platform, said reverse auctioning is a win-win situation.

 

“It allows suppliers to compete in a transparent model to drive down pricing on behalf of DLA and more importantly, the taxpayers,” he said.

 

According to Charles Howerton, reverse auction program manager, DLA Acquisition, DLA Headquarters, Fort Belvoir, Virginia, the savings generated by reverse auctioning has been significant. Since DLA implemented it six years ago, Howerton said the savings to the government and ultimately the taxpayers, has been in excess of six billion dollars.