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WASHINGTON -- The combination of Defense Logistics Agency Document Services’ recently issued multi-award “indefinite delivery, indefinite quantity” contract to several multifunction device equipment vendors and the use of the reverse auction process is realizing significant savings for DLA and the Department of Defense.
The multifunction devices that scan, copy, fax and print are the key elements of the organization’s Equipment Management Solutions program, which places these devices in customer work spaces, officials said. The IDIQ award was designed to provide delivery of the required devices to customer commands and units at a much more rapid pace than previously possible.
Chuck McNelley, chief of contracting for DLA Document Services, noted a unique aspect of the contract is that, as requirements are received, a delivery order can be immediately placed since all price reasonableness, past performance and technical acceptance has already been approved for vendors involved. At the time of the delivery order, the only aspect that remains is the final pricing for each order.
"This is where this IDIQ contract becomes unique," he said.
He further detailed that pricing at the delivery order level is determined through a reverse auction process involving the four vendors who were awardees of this contract. The contracting office of DLA Document Services posts the requirement and conducts several rounds of bidding by the vendors, who have visibility of the current lowest bid price. The delivery order is then placed to the lowest bidder.
“This reverse auction approach fosters competition among contractors with the goal of reducing the price the government pays for a particular item, in this case the [multifunction] devices,” McNelley said. “By requesting an item from multiple vendors, we are able to get those suppliers to bid against each other to give DLA the best price for the item.”
DLA Document Services Director Steve Sherman noted the organization is always seeking “ways to best support our customers yet reduce their costs and increase response – to do more faster and with less cost.”
“We are using the reverse auction process to ensure fair opportunity to the contract holders as well as seek out significant cost savings,” he said. “All the vendors get to play as we move forward. If they lose on a delivery order, they learn and can compete more effectively with the next order. Our DoD customers are the winners.”
To date, four orders have been issued and the combined reverse auction amount totals nearly $2.5 million worth of savings to DoD over the base costs of the IDIQ contract. DLA Document Services has also reduced the procurement acquisition lead time from roughly 4.5 months to less than one month.
| Date Taken: | 01.13.2012 |
| Date Posted: | 01.26.2012 14:15 |
| Story ID: | 82866 |
| Location: | WASHINGTON, DISTRICT OF COLUMBIA, US |
| Web Views: | 97 |
| Downloads: | 0 |
This work, Reverse auctions save money for DLA Document Services, Defense Dept., by Keith Beebe, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright.
