Derbyshire County Council have been awarded funding by EM IEP to develop an eAuction tool for authorities in the region.

The use of Reverse Auctions (eAuctions) as a tool to deliver enhanced competition is growing across both central and local government. As part of the 'Changing the Way Derbyshire Works' programme, the Council has been working with the other East Midlands councils to raise the profile of eAuctions and collate future opportunities for regional and local collaboration which are expected to deliver improved Value for Money. This work has been funded as part of an eAuction programme by the EM IEP.

The market has misgivings that the introduction of the eAuction tool is purely to drive down prices. It does have the effect of sharpening prices but bidders are also beginning to recognise that they can derive significant benefits from the eAuctions, in particular:

i) Time saved in bid process;
ii) Accessible and easy to use bidding tool;
iii) Auctions still deliver a balanced quality/price solution;
iv) Clear transparency and control of the process;
v) Real-time data and the ability to respond to competitor pricing (multiple dynamic bids); and,
vi) Provides real evidence to improve competitive performance.

The proposed solution is required to meet specific criteria:
• Be delivered within the available budget
• Require minimum ongoing support
• Be a tried and tested solution
• Have an on line training package for users
• Have the "buy in" of heads of procurement in the East Midlands
• Allow eAuctions to operate at any financial threshold
• Have minimum on going costs
• Auctions able to be managed at a local level
• No restrictions on number of Auctions through the solution

The website will be launched soon.