FedBid gives US government procurement a 'reverse eBay'

30 Nov 2010

Source:  Washington Post
A new internet purchasing site is offering a significant opportunity to circumvent the US Government regulations that make buying even simple equipment and supplies complex. FedBid is trying to make the process easier and the prices more competitive through a Web site it compares to a "reverse eBay."

Government agencies are now making more than $1 billion in purchases through the site each year and, in some cases, requiring contracting officers to use it.

The FedBid site allows a contracting official to post solicitations for items such as office supplies, computer equipment and furniture, or for more unusual supplies, such as trained dogs. Companies, which have to register to participate, submit bids. The site indicates to each competitor whether its bid is the lowest -- but provides no additional information, like how many others have made bids or how close a bid comes to the lowest price. A company that isn't the lowest bidder can try again with a reduced price.

FedBid is now used by more than 3,000 buyers in all of the major federal agencies. For federal government transactions, the company collects 3 percent of the final price up to $10,000; its cut is built into the bidding process so buyers see the full cost. Some agencies mandate that contracting officers consider FedBid first for eligible purchases. The U.S. Customs and Border Protection procurement office requires that its employees use FedBid for commodities unless there's a reason not to, said Diane Sahakian, the office's associate director.

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