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Rule 24:
E-auction

Primary requirement

  1. Agencies must notify suppliers in advance if they intend to run an e-auction.

Application

  1. The advance notice must be in the Notice of Procurement and must include:
    1. a summary of the Rules that will apply to the e-auction
    2. the specific criteria that will be used in the e-auction.
  2. The automated evaluation method used in an e-auction must be based on the criteria set out in the Notice of Procurement.
  3. Before beginning an e-auction, agencies must provide each participating supplier with:
    1. a summary of the results of its initial tender evaluation
    2. the automated evaluation method that will be used to re-rank suppliers based on their e-bids
    3. the formula that the automated evaluation method is based on
    4. training on how to use the hosted e-auction website or software, if requested
    5. any other relevant information about how the e-auction is run.

More information

More information on e-auctions

An e-auction is an online reverse auction. It gives suppliers the opportunity to bid against each other in real time to improve their offers. An e-auction can be run on your own in-house software or as a hosted service.

The benefits of an e-auction include:

  • the negotiation process is paperless and streamlined
  • the negotiation takes less time
  • the process of awarding the contract is more transparent
  • it discourages collusion and bid-rigging.

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