The Air Force's decision comes after the Veterans Affairs IG found alleged procurement fraud, intimidation and threats against a federal official. FedBid says it's cooperating with the Air Force and believes it took the necessary steps to fix the problems.
Reverse auction company FedBid is making some changes at the top. The company will split into federal and commercial entities. Joe Jordon will continue as leader of the federal portion. Federal News Radio Executive Editor Jason Miller tells In Depth with Francis Rose about what the new FedBid will look like.
The reverse auction vendor says its decision to split up its federal and commercial businesses has nothing to do with the critical Veterans Affairs inspector general report from September. Joe Jordan said FedBid has taken several steps to ensure any problems highlighted by the IG are resolved.
Reps. Jeff Miller (R-Fla.) and Sam Graves (R-Mo.), chairmen of the Veterans Affairs and Small Business committees, respectively, wrote to Anne Rung, OFPP administrator, saying agencies still are "misusing" reverse auctions to "evade competition and compliance with other procurement regulations."
The Veterans Affairs inspector general issued a report alleging the deputy chief procurement officer at the Veterans Health Administration used her position to promote and award a contract to FedBid, a reverse auction vendor, and improperly acted as an agent of the vendor, creating a conflict of interest.
Former OFPP Administrator Dan Gordon joins Mark Amtower for a wide ranging discussion of a variety of procurement issues. March 17, 2014
The Veterans Affairs Department's decision comes as lawmakers are putting this acquisition concept under more scrutiny. House Veterans Affairs and Small Business Committee lawmakers question whether agencies are getting the best prices and whether they are sacrificing competition. GAO, other experts say OFPP needs to develop a governmentwide policy for reverse auctions.
As the use of reverse auctions continues to rise, the Government Accountability Office says agencies need more clear cut guidance to realize a maximum amount of savings.
Defense analyst Robert Levinson told the Federal Drive with Tom Temin and Emily Kopp that while reverse auctions can generate significant savings for the federal government, they do have their downside.
Richard Domaleski, CEO of World Energy, an energy procurement company, says reverse auctions are one way agencies can make the contracting process more open and transparent.