Reverse auction

(redirected from Procurement auction)

Reverse auction

An auction where the role of buyer and seller is reversed. The buyer advertises a need and sellers compete to provide the product or service. Generally the seller with the lowest bid wins the auction.
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The Alberta Electric System Operator has submitted an implementation plan to the provincial government, and is planning to hold a first procurement auction before the end of 2016.
If the procurement auction takes the form of a standard low-price auction in which the lowest bid wins and the winning seller is paid their bid, then it is likely to be the case that the winning seller will be the one that underestimated the cost of the project by more than any of his competitors.
At a lately concluded short term power procurement auction PTC India has secured the largest number of power supply orders at competitive rates to Uttarakhand and Kerala state utilities.
The government conducted a public procurement auction over several stages.
The responsibility for [crude] oil and fuel procurement auction itself has been taken over by Pertamina" under his division, which is also in charge of the ISC.
In a first-price sealed-bid procurement auction, each supplier independently submits a single bid without seeing the bids of others.
In other words, there is a trade-off as the combinatorial procurement auction may solve the exposure problem (lowering the offered prices from global bidders), it also introduces a free riding behavior (less aggressive bids from local bidders).
Nikolov notes that the latest type of cartel which the anti-trust watchdog came across involved public procurement auction manipulations.
The GSA is conducting a lease procurement auction and expects to make an award in the near future, he said.
Additional arguments for restricting the number of bidders are found in Hallwood [1996], who discusses the advantages and disadvantages with an invited bidding procurement auction compared with an open bidding procurement auction and posted-pricing and negotiation.
In a typical state-level procurement auction held in the United States, firms submit sealed bids for a particular project that has been advertised in advance by the state's Department of Transportation.
3]s Bolognesi Group will set up two LNG receiving terminals and two related power plants with above 2,400MW of total generating capacity, following its booming participation in a government electricity procurement auction.
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