DLA AVIATION REVERSE AUCTION PROGRAM Suppliers Industry Day May 16, 2017

. DLA Aviation Reverse (RA) Auction Program Introduction Policy Conditions Supplier’s Exception to RA Guidance Reverse Auction Tool Common Questions Questions Contact Information

Introduction Reverse Auction is a pricing tool Allows offerors to submit real-time, electronic bids in response to competitive solicitations during the negotiation phase Reverse Auction establishes the final offered price(s) Final price(s) in conjunction with the evaluation factors identified in the solicitation form the basis of award Reverse Auction does not change the evaluation or award process

Policy In accordance with Defense Logistics Agency Directive (DLAD) 15.407-90(a)(1): The contracting officer must consider using reverse auctions in solicitations for competitive procurements valued above the micro-purchase threshold

Conditions The Reverse Auction tool may be used for a wide range of procurement actions; however, conditions best suited for a RA are: High volume items Commodity type commercial items Commodity-like services Long term contracts Competing Delivery Orders

Supplier’s Exceptions Exceptions to the Reverse Auction Provision Written exceptions render the proposal unacceptable, or bids non-responsive Offer will not be evaluated further

Guidance Solicitations shall include procurement notes L09, Reverse Auction or L10, Competing Individual Delivery Orders Through Reverse Auctions, when the contracting officer is contemplating the use of reverse auction: By submitting a proposal, offerors agree to participate in the auction Prices may be disclosed during the reverse auction Disclosure is anonymous using generic identifier (e.g. Offer A) At the close of the reverse auction, the offeror’s auction price is considered its final price proposal revision

Guidance, cont. Offeror must agree with terms and conditions of the entire solicitation and the commercial reverse auction service Offerors unable to enter pricing through the commercial reverse auction service provider’s system during a reverse auction must notify the buyer/contracting officer or designated representative immediately If you are unable to participate in the auction, your original offer will be considered your final offered price

Guidance, cont. Offered Prices: Offers of the Same Price: Lowest price is disclosed to all auction participants Number of participants is not disclosed Identities will remain anonymous Offerors are not required to revise their price Offers of the Same Price: Reverse Auction tool identifies the ‘Lead’ / ‘Non-Lead’ Lead offeror sees only their bid; Non-Lead will see the identical price, if permitted Lead offeror is considered the low bid Tie offers / bids (identical price) may be prohibited

Guidance, cont. After the Auction: Final Offered Prices will be used All Evaluation Factors will be utilized as cited in the solicitation Award decision will be based on the “Best Value” to the Government Award may not be made to the lowest offered price Source Selection process is not changed

Procurex Reverse Auction Platform (RAPT)

Accessing Procurex Buyers may load you in advance to invite you to an auction The initial Procurex, Inc. email invitation will: Notify you of an event Direct you to the Procurex, Inc. webpage to create a password using your email for login Navigate to dla.procurexinc.com Login by entering your email and password If you want to register in advance, you may do so at the Procurex website -“Register Your Company” See “Seller Software Training” Guide for more instructions Reminders: Allow for Procurex emails to come to your inbox—prevent them from going to SPAM Email updates will be sent when changes are made to a scheduled auction

Procurex Training & Administration Login into provider’s website at dla.procurexinc.com Register your company, if not already registered Review all training material by selecting “Seller Software Training” Only trained offerors may engage in a reverse auction Procurex Administration: From the home page, go to Administration Select “Maintain my company users” to add additional contact(s) Points of Contact: Solicitation – contact the buyer Auction – contact the Primary Point of Contact listed in Contacts  

Procurex Screen Shots After logging in, see three categories: Administration: Company information and add additional users Training Tools: Seller Software Training Event Tools: Select accept, view, and bid on an event View completed events

Procurex Screen Shots After selecting “Accept/View/Bid in Events” select the specific “EVENT NAME” you want to bid in; usually titled by solicitation number

Procurex Screen Shots Date/Time View Decrement Date/Time Enlarged View auction date and times View contact Information View terms and conditions

Procurex Screen Shots Review auction parameters View and agree to the Terms and Conditions Select if you will participate

Time remaining until end of auction Procurex Screen Shots Time remaining until end of auction Bid entry field Lead bid Price View Start Price which may be the lead bid price View Tasks for additional information, such as: View Your Bids View Contacts (included Primary POC) View terms of the auction Auction Status allows you to see your prices in comparison to the Lead bid Price

Procurex Screen Shots View Auction Status opens up another window showing your position of ‘Lead’ or ‘Not Lead’

Procurex Screen Shots 120.00 165.00 300.00 Input your prices then select “Preview Bid” to verify prices In order to submit your price you must click “Place Bid” Note: An error message may appear at bottom of page (e.g., price entered did not meet minimum decrement or price entered is higher than your initial offer). If so, re-enter the correct price, preview, and place bid again.

Procurex Screen Shots Automatic Extensions may occur if lead bids are submitted within the last few minutes of the auction Once the bids have stopped and the auction has ended, it will show as completed

Common Questions After the auction is completed, can the buyer conduct negotiations? Yes, sometimes this is necessary, if there is some concerns about the pricing of the auction or the Government Objectives were not met. This is at the discretion of the contracting officer (KO) in accordance with the Procurement Notes and Federal Acquisition Regulation (FAR) 15.307. The KO asked me for a subcontracting plan before the reverse auction; why can't we wait until after the auction? All of the non-price factors must be resolved prior to the auction. The RA is a pricing negotiation tool, so only price is addressed during the auction. The offeror must be responsive to the solicitation before being invited to the auction.

Questions

Contact Information Programs Division Chief 804-279-5874 Programs Branch, Chief 804-279-3957 Lead 804-279-6830 Reverse Auction Program Managers 804-279-3561, Primary 804-279-3647, Alternate Procurex, Inc. 1-866-412-7161 (toll free)

DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT