Overview
This section identifies specific categories of federal acquisitions where the use of reverse auction processes is strictly prohibited. It serves as a regulatory safeguard to ensure that complex services, specialized construction, and safety-critical equipment are not procured solely through price-driven auction mechanisms.
Key Rules
- Construction Restrictions: Reverse auctions are prohibited for design-build construction contracts.
- Professional Service Exclusions: Procurements for architect-engineer (A&E) services subject to 40 U.S.C. chapter 11 (the Brooks Act) cannot use reverse auctions.
- Procedural Conflicts: Reverse auctions may not be used for acquisitions governed by sealed bidding procedures under FAR Part 14.
- PPE Prohibition: The acquisition of personal protective equipment (PPE) is excluded from reverse auctions, as mandated by specific National Defense Authorization Acts (NDAAs) from Fiscal Years 2017, 2018, and 2019.
Practical Implications
- Contracting officers must utilize traditional negotiation or evaluation methods for high-stakes requirements like PPE and A&E services to prioritize technical qualifications and safety over the "race to the bottom" pricing typical of auctions.
- Before initiating a reverse auction, acquisition teams must conduct a compliance check to ensure the requirement does not fall under these statutory or regulatory exemptions.