GSA Launches Online Reverse Auction Platform for All Federal Agencies, Includes Construction Services

AGC Urges Removal of Construction Services Procurement Option On Aug. 13, AGC sent a letter to the U.S. General Services Administration (GSA) strongly urging the federal agency to remove from its reverse auction (RA) platform the construction services options. GSA recently launched a reverse auction platform that enables any federal agency to conduct the procurement of certain construction services and materials through an online reverse auction. AGC strongly advocates against the use of reverse auction procurement for construction services. In its letter to GSA, AGC notes that the complexities of these processes simply do not compare to the purchase of an off-the-shelf commercial item. The reverse auction process ignores the unique nature of construction. General contractors, specialty contractors, subcontractors and suppliers offer and provide a mix of services, materials and systems. They do not “manufacture” buildings, highways, or other facilities. To supplement its arguments, AGC shared its position paper on reverse auctions for construction services procurement and the U.S. Army Corps of Engineers’ reverse auction report, which highlights why it abandoned the use of reverse auctions for procuring construction services nearly ten years ago. AGC also recently testified against the use of reverse auction procurement for construction services before the House Small Business Committee.  AGC-backed legislation prohibiting the practice was recently introduced this Congress. For more information, please contact Jimmy Christianson at (703)-837-5325 or christiansonj@agc.org.