PA Department of General Services Uses Reverse Auction Technology to Generate Savings in Response to GO-TIME Challenge

HARRISBURG, Pa., June 15, 2015 /PRNewswire-USNewswire/ -- Department of General Services Secretary Curt Topper today announced that department's Bureau of Procurement has reinstated the use of Reverse Auction technology as a way to meet the challenge set forth by the creation of Governor Tom Wolf's GO-TIME – Governor's Office of Transformation, Innovation, Management and Efficiency – initiative. Reverse auctions on two contracts already are expected to save the commonwealth an estimated $26 million, in addition to savings from using in-house software instead of outside consultants.

"Through GO-TIME, we've been challenged to find innovative ways to reduce costs without sacrificing quality," Topper said. "In order to become a 'Government that Works,' we must be a government that innovates.  We need an ongoing, relentless commitment to innovation. The use of reverse auction technology is one way we are answering that challenge."

Reverse auction technology enables the commonwealth to hold live, online auctions where bidders are able to see how their prices compare to those of other bidders competing for commonwealth contracts.

Secretary Topper noted that DGS has already conducted two reverse auctions with positive results:

• The Corrections Health Care Services contract was awarded to Correct Care Solutions and saved the commonwealth $16 million from pre-auction price to post-auction price. The 5-year contract is worth $314,900,000.

• The PennDOT and COSTARS Road Salt contract, which saw an estimated savings of $10 million from the pre-auction price to post-auction price (award pending).

"This is competition in its truest sense," Topper said. "This technology allows suppliers to compete for our business in real-time, resulting in real savings for the commonwealth. It is an excellent way to purchase goods and services at the overall best value and make the best use of taxpayer dollars.

"A major benefit is that we are able to conduct the reverse auctions in-house, using our own software. This eliminates the need to incur any additional expenses for consultants or outside support to operate this cost-saving initiative."

The commonwealth uses Supplier Relationship Management (SRM) and its companion auction platform "Live Auction Cockpit." Participation in a reverse auction is open to all prequalified suppliers registered with the commonwealth as a Procurement Supplier. Prior to the start of the auction, each participant must have a "bidder" role established.  All participating bidders are required to have a PC with a web browser and internet service to access the auction's secure system via the internet.

GO-TIME leverages inter-agency coordination and collaboration to maximize efficiency, modernize state government operations, and provide the highest quality services. The Executive Order signed by the governor tasked state agencies with finding cost savings for the 2015-16 fiscal year from efficiency and innovative initiatives to help address Pennsylvania's $2.3 billion deficit. Visit the GO-TIME website to find out how this initiative is helping to create a "Government that Works." 

MEDIA CONTACT: Troy Thompson, 717-787-3197

SOURCE Pennsylvania Department of General Services