The Use of Reverse Auction Within the U.S. Army

Abstract

The purpose of this research project is to analyze the effectiveness and efficiency of the U.S. Army's use of reverse auctions (RAs) in regard to contracting. RAs are powerful procurement tools that leverage the power of fluid market conditions through a dynamic pricing environment. This project examines the use of RAs within the Army Contracting Command (ACC) using E. Cory Yoder's Three Integrative Pillars for Success. Research questions focus on identifying best practices currently used within the contracting field. Data gathered through personal interviews with subject matter experts and practitioners of RA tools identifies whether current RA platforms deliver best value procurements and generate true cost savings. Interview questions target three key focus areas: personnel, platforms, and protocols. If the ACC is to utilize RAs in the most effective and efficient manner, it is essential to select the appropriate RA type, field the best platform, and implement the correct protocols to maximize the use of RAs. These three factors together will yield maximum savings while generating new process improvements that will enable the ACC to become a more efficient and lean organization. Conclusions and recommendations provide suggestions for improving the Army's future use and application of RAs.