eSourcing Scotland

An Overview of Electronic Auctions

Version 1.0

April 2010
 Table of Contents

1. An Overview of Electronic Auctions...........................................................3

2. What is an eAuction?.................................................................................3

3. When to use eAuction............................................................................... 3

4. Potential Benefits from eAuctions Include:................................................3

5. ePS Programme - Support & Advice..........................................................4

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1. An Overview of Electronic Auctions

eProcurement Scotland (ePS) provides access to electronic auction (eAuction)

functionality through the eSourcing Scotland system. This system is an
element of the core ePS service and is available to any buying organisation
participating in the programme.

2. What is an eAuction?

An eAuction is an electronic reverse auction where suppliers use internet-

based software to bid against each other online and in real time against a
published specification.

eAuction can be based on price alone or can use transformational bidding to

account for other criteria such as quality and delivery.

3. When to use eAuction

eAuctions are most often used in the final stages of the procurement where
all non-price factors (e.g. quality evaluation and terms and conditions) have
already been agreed.

eAuction work best where:

o the requirement is of sufficient size to attract competition

o the requirement can be accurately specified

o there is a competitive market

4. Potential Benefits from eAuctions Include:

o Cost savings;

o Time savings - an eAuction can shorten the often lengthy end-stage

price negotiations;

o Ability to open up procurement to a wider market allowing suppliers to

make bids without being restricted by geographic location;

o Transparency of process to all participants; and

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 o An electronic audit trail of activity.

5. ePS Programme - Support and Advice

The Programme Office provides support to buying organisations using the

eAuction service through the eSourcing Scotland system, producing detailed
guidance, advising on best practice and facilitating collaborative involvement
in eAuctions amongst user organisations.

Training, coaching and on-line system documentation is provided for all users
of eSourcing Scotland. Helpdesks are also available supporting both technical
and non-technical queries.

For more information or to feed back comments about this document, please
contact 0131 244 3618 or e-mail eprocurement@scotland.gsi.gov.uk