UNCITRAL Considers Electronic Reverse Auctions, as Comparative Public Procurement Comes of Age in the U.S.

This article reports on the United Nations Commission on International Trade Law (UNCITRAL) review of electronic reverse auctions in procurement systems around the world. The article describes the U.S. experience, including the stalled regulatory initiative regarding reverse auctions. Drawing on the literature and on UNCITRAL studies from procurement systems in Asia, Europe and Latin America, the article cites lessons from other nations\u27 use of reverse auctions. In particular, the article discusses the European Union\u27s new rule on reverse auctions, which is probably the best example, worldwide, of a careful attempt to regulate reverse auctions. The article discusses traditional questions in reverse auctions - when is it appropriate to use reverse auctions - and also addresses the more difficult question of when it is probably inappropriate to use reverse auctions. Given these recurring problems, and the pitfalls inherent in reverse auctions, the authors argue that, on balance, reverse auctions should be regulated, and should not be left to proliferate without guidance and structure. Finally, they suggest that the reverse auctions debate itself marks a watershed in U.S. procurement policy: perhaps for the first time, thanks to advances in communications and comparative study, U.S. policymakers will be able to draw directly on other nations\u27 successes and failures in addressing a complex and difficult issue of procurement policy

UNCITRAL Model Law: Reforming Electronic Procurement, Reverse Auctions, and Framework Contracts

A Working Group of the United Nations Commission on International Trade Law (UNCITRAL) is working on potential reforms to UNCITRAL\u27s Model Procurement Law and its Guide to Enactment. This article, written by several advisors to the U.S. delegation to the UNCITRAL Working Group, reviews the Working Group\u27s progress on several important fronts. The Working Group has reached initial consensus on a number of difficult procurement issues, including electronic commerce, reverse auctions and framework contracts, and significant progress has been made in a number or other areas, including the procurement of services, the strengthening of procurement remedies (known in the United States as bid protests), and the utilization of socioeconomic policy tools

UNCITRAL Model Law: Reforming Electronic Procurement, Reverse Auctions, and Framework Contracts

A Working Group of the United Nations Commission on International Trade Law (UNCITRAL) is working on potential reforms to UNCITRAL\u27s Model Procurement Law and its Guide to Enactment. This article, written by several advisors to the U.S. delegation to the UNCITRAL Working Group, reviews the Working Group\u27s progress on several important fronts. The Working Group has reached initial consensus on a number of difficult procurement issues, including electronic commerce, reverse auctions and framework contracts, and significant progress has been made in a number or other areas, including the procurement of services, the strengthening of procurement remedies (known in the United States as bid protests), and the utilization of socioeconomic policy tools