Reverse Auction Procurement for Commodity Items

Rather than the awarding for instance a stationary supply contract to a local supplier for X years set up a reverse auction procurement site for commodity items and consumables.

 

List what you want, minimum spec required and quantity and run a reverse auction to gain the best price.

 

Make it a stipulation that the business have to IOM Tax payers to ensure maximum return to local economy. 

Why the contribution is important

  • Drives down procurements costs for non-complex procurements
  • Introduces more competition
  • Increases transparency 

by JonesIOM on April 05, 2017 at 11:56AM

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Comments

  • Posted by Andyrew April 05, 2017 at 19:17

    Having been involved in a number of these in the U.K. I don't agree that they bring down costs. The larger organizations know how to exploit this system. They tend to drive down the price until they win and then find every single way conceivable to extract as much out of the contract that they can. I've been on both sides and can tell you it keeps a procurement department very busy indeed not to mention the legal department.

    Better contract management by Govt would save tens if not hundreds of thousands every year.
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