AGC Responds to Interior Department’s Reverse Auction Use for Procuring Construction Services

On April 9, AGC urged the U.S. Department of the Interior (DOI) to reverse a decision to procure construction services using an online reverse auction. Specifically, the Fish & Wildlife Service (FWS)—an agency within DOI’s jurisdiction—recently issued a solicitation for the “Tail Gate Spread Delivery of Gravel” to be procured as a commercial item contract, rather than a construction services contract, using a reverse auction. AGC strongly advocates against the use of reverse auction procurement for construction services. In its letter to FWS, AGC notes that despite the solicitation’s indication otherwise, it remains “a supply contract for construction services—specified construction material excavation, refinement and delivery.” AGC further mentions that “the complexities of these processes simply do not compare to the purchase of an off-the-shelf commercial item” and should not be procured as such through a reverse auction. To supplement its arguments, AGC shared its position paper on reverse auctions for construction services procurement and the U.S. Army Corps of Engineers’ report highlighting why it abandoned the use of reverse auctions for procuring construction services nearly ten years ago. For more information, please contact Jimmy Christianson at (703) 837-5325 or christiansonj@agc.org.