Reverse auction stocks DFAS

Defense Finance and Accounting Service

The Defense Finance and Accounting Service recently used a reverse auction to buy more than $6 million in information technology hardware, saving the Defense Department's accounting service nearly $2 million.

Using the reverse auction last month, DFAS purchased more than 3,000 desktop PCs, more than 1,000 laptop computers and 600 21-inch monitors from Dell Computer Corp., service officials said.

In a reverse auction, an agency describes a product or service it wants to buy and then vendors bid on supplying that product or service. The auction takes place online, and vendors compete for the contract by lowering their prices as they see other offers posted.

The DFAS reverse auction, which took place Sept. 26, was conducted in cooperation with the General Services Administration's Federal Technology Service and CISglobal of Silver Spring, Md. The real-time, online auction involved four prequalified vendors.

"By harnessing competitive market forces, we are able to purchase equipment at the lowest possible prices, saving the government and taxpayers significant money," Audrey Davis, DFAS chief information officer, said in a statement.

DFAS officials said they were able to save $1.9 million, compared with the price they would have paid using GSA schedule contracts.

Last year, DFAS officials say they used reverse auctions to buy $7.6 million in equipment, at a savings of 22 percent off original purchase prices.