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Business
& Labor
Corps
Says Reverse Auctions Not for Construction Services
(enr.construction.com - 08/02/04 issue)
The U.S. Army Corps of Engineers says
in a July 26 report that Internet-based reverse auctions are
a strategic acquisition tool, but that they should be used
primarily for commodities procurement and not for construction
services. The findings were contained in the final report
of the Corps' pilot program on reverse auctions.
A.J. Castaldo, the Corps' deputy principal assistant in charge
of contracting and the author of the report, says it became
apparent that the reverse auction practice was best for acquisition
of such items as spare parts, raw materials and other items
that are considered an identical product manufactured in identical
conditions. With a price database for comparison, reverse
auctions can save significant dollars, he says. But Castaldo
claims that the practice is not as successful for construction
because projects are unique. Instead, the Corps recommends
sealed bids.
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