Skip to main content

Section 15: Contracts Awarded by Reverse Auction


(1) Reverse auction bidding may be used if the Director of Purchasing and Contract Services determines, in writing, that reverse auction bidding will provide the best value to the Utah State University.

(2) Reverse auction bidding is appropriate to use when there are multiple prequalified providers of a procurement item. 

(1) The reverse auction bidding process begins when Utah State University issues an invitation for bid to prequalify bidders to participate in the reverse auction.

(2) The invitation for bid shall:

(A) state the period of time during which bids will be accepted;

(B) state that the bid will be conducted by reverse auction;

(C) describe the procurement items sought;

(D) describe the minimum requirements to become prequalified;

(E)  state the required contractual terms and conditions; and

(F)  describe the procedure that Utah State University will follow in conducting the reverse auction.

(3)  In order to participate in a reverse auction, a bidder shall agree to:

(A)  the specifications, and contractual terms and conditions, of the procurement; and

(B)  be trained in, and abide by, the procedure that Utah State University will follow in conducting the reverse auction.

(4)  Utah State University shall publish an invitation for bid for a reverse auction in accordance with the requirements previously outlined.

(1) When conducting a reverse auction, Utah State University:

(A) may conduct the reverse auction at a physical location or by electronic means;

(B) shall permit all prequalified bidders to participate in the reverse auction;

(C) may not permit a bidder to participate in the reverse auction if the bidder did not prequalify to participate in the reverse auction;

(D) may not accept a bid after the time for submission of a bid has expired;

(E) shall update the bids on a real time basis; and

(F) shall conduct the reverse auction in a manner that permits each bidder to:

(i) bid against each other; and

(ii) lower the bidder's price below the lowest bid before the reverse auction closes.

(2) At the end of the reverse auction, Utah State University shall:

(A) award the contract as soon as practicable to the lowest responsive and responsible bidder who meets the objective criteria described in the invitation for bid; or

(B) cancel the reverse auction without awarding a contract.

(3) After the reverse auction is finished, the Director of Purchasing and Contract Services shall make publicly available:

(A) the amount of the final bid submitted by each bidder during the reverse auction; and

(B) the identity of the bidder that submitted each final bid; and

(C) if practicable:

(i) the amount of each bid submitted during the reverse auction; and

(ii) the identity of the bidder that submitted each bid.