Air Force Journal of Logistics. Volume 34, Numbers 3 and 4, 2011

The DoD is failing to achieve maximum savings by limiting e-RA use to simplified, low-dollar acquisitions. Substantially greater savings are obtainable through strategically identifying goods or services in large volume in order to maximize economies of scale. Electronic Reverse Auctions -- Removing Barriers to Unleash Savings in Federal Procurement explores electronic reverse auction (e-RA) use within the federal government as a strategic sourcing tool. The authors, using spend analysis for fiscal years 2007 and 2008. confirm the underutilization of e-RAs. Next, using an e-RA for generators (the first and only reverse auction conducted by the Air Force in Kuwait) as a case study, they examine and explain how the government can integrate e-RAs into its source selections while easing the learning curve for individual contracting officers, maximizing e-RA use where appropriate, and saving substantial taxpayer dollars.