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

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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Procurex Reverse Auction Platform (RAPT)

12. Accessing Procurex
Buyers may load you in advance to invite you to an auction
The initial Procurex, Inc. invitation will:
Notify you of an event
Direct you to the Procurex, Inc. webpage to create a password using your for login
Navigate to dla.procurexinc.com
Login by entering your 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 s to come to your inbox—prevent them from going to SPAM
updates will be sent when changes are made to a scheduled auction

13. 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

14. 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

15. 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

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

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

18. 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

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

20. 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.

21. 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

22. 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)
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.

23. Questions

24. Contact Information
Programs Division Chief Programs Branch, Chief Lead Reverse Auction Program Managers , Primary , Alternate Procurex, Inc (toll free)

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