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This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and universities.

Rule 123:5-1-09 | The reverse auction process.

 

(A) Reverse auctions will be conducted using an Invitation to Bid ("ITB") by the department of administrative services. Unless otherwise specified in this rule, a reverse auction ITB will follow the process set forth in paragraphs (A) to (H) of rule 123:5-1-07 of the Administrative Code.

(B) Bidders will submit a qualification summary as a response to the ITB.

(1) The signature of the bidder on the qualifications summary will serve as the signature for the entire response to the ITB.

(2) The qualifications summary will include the names and contact information of the persons who will serve as the authorized representatives of the bidder during the auction event.

(3) The department will use information from the qualifications summaries to register bidders for the auction event and reserves the right to exclude bidders that are deemed not responsive or not responsible.

(C) The department will provide written notice to each bidder through the department's electronic procurement system regarding the bidder's inclusion or exclusion from the qualified bidders list. Only those bidders on the qualified bidders list will be allowed to participate in the auction event.

(D) The department will work with the bidders on the qualified bidders list to prepare for the auction event. Preparation may include configuration of the department's electronic procurement system, testing of the bidder interface, delivery of auction event documentation, and training on how to use the system for the auction event.

(1) The department will provide the necessary administrative support and take any required actions to ensure that the integrity of the auction event is not compromised, including:

(a) Keeping an event record that will include the prices offered by the bidders. The event record will become part of the contract documents and will become a public record at the conclusion of the event.

(b) Configuring the bidder interface so a bidder will not know the identities of competing bidders until the auction event is complete and the contract awarded.

(2) Bidders may submit multiple bids during the auction event. The lowest price offered will become the price portion of the bid response.

(3) Bids must be submitted by, or under the direction of, an authorized representative designated in the bidder's qualifications summary.

(4) The auction event will have a scheduled stop time. However, if stated in the ITB, the department may extend the auction event's duration if a pre-determined number of bids are not received within a specified period of time.

(a) Procedures for extending the auction event will be described in the ITB.

(b) The auction event will conclude at either the scheduled stop time or when all extensions are completed, whichever is later.

(5) When the department has reason to conclude that a bid is unreasonably lower than others that have been submitted, the department will ask the bidder to confirm the bid response.

(6) After the conclusion of the auction event, the department will award the contract to the bidder with the lowest bid determined to be the most responsive and responsible. An apparent low bidder found not to be responsive or responsible will be notified of that finding and the reasons for it.

Last updated May 29, 2026 at 7:58 AM

Supplemental Information

Authorized By: 125.072
Amplifies: Not applicable.
Five Year Review Date: 2/13/2031
Prior Effective Dates: 9/21/2004, 3/28/2014, 3/9/2020, 4/26/2024