Price is a factor in every purchase. The seller wants the highest price and the buyer wants the lowest price. The final price will fall between those two extremes.
One less common approach to finding that final price is by using an auction. In an auction, the seller uses an interactive bidding process to drive the price UP. The HIGHEST bidder wins.
Another approach that is even less common is the Reverse Auction. A reverse auction is just what it sounds like. The buyer uses an interactive bidding process to drive the price DOWN. The LOWEST bidder wins.
In this episode, Kevin and Paul dig into how Reverse Auctions apply in federal contracting. We also provide some context on where they may and may not be an effective acquisition strategy.