e-Reverse Auction Guidelines for MDB Financed Procurement

Borrowing countries are increasingly inclined to use electronic procurement systems and means for processing and managing MDB funded activities. This guide is intended to be used for the application of e-reverse auctions during the procurement process. Not all procurement is suitable for e-reverse auction. Some governments consider e-reverse auction to be a special case of e-bidding while others see it as part of e-Purchasing. For United Nations Commission on International Trade Law (UNCITRAL), an e-reverse auction is described as an online, real-time dynamic auction between a buying organization and a number of suppliers who compete against each other to win the contract by submitting successively lower priced bids during a scheduled time period. Where e-GP systems are intended to be used for e-reverse auctions for works, goods, or services under MDB financed procurement, the MDB administering division or resident office administering the project will, consistent with any approved delegations, evaluate the e-reverse auction features, standards, and operations to ensure it satisfies the conditions that follow in this guide. This guideline is divided into the following eleven sections: 1) system preparation; 2) bidding specifications; 3) advertising; 4) operation; 5) correspondence, amendments, and clarification; 6) access; 7) bid securities; 8) bid evaluation and contract award; 9) information security management; 10) authentication; and 11) other conditions.