FAR 52.217-11—Reverse Auction—Orders.
Plain-English Summary
FAR 52.217-11, Reverse Auction—Orders, tells contracting officers and contractors how reverse auctions may be used when placing orders under an existing contract or blanket purchase agreement (BPA). It defines the key terms "reverse auction" and "reverse auction service provider," authorizes the contracting officer to use a reverse auction for order placement, and explains what a contractor agrees to by submitting a quote or proposal in response to a reverse-auction solicitation. The clause also addresses how prices may be disclosed during the auction, how a contractor may withdraw from further participation, and the Government’s right to cancel the auction if only one offer is received. Finally, it sets rules for protecting price, proposal, and source selection information when a third-party auction platform is used, including the treatment of contractor-identified restricted information and the relationship to FAR 3.104-1 bid or proposal information. In practice, this clause is about competition mechanics, transparency during the auction, and safeguarding sensitive procurement information while still allowing the Government to drive better pricing for orders under existing vehicles.
Key Rules
Reverse auction defined
A reverse auction is a pricing process, usually run through an electronic tool, where offerors can see competing prices without knowing who submitted them and can lower their prices until the auction closes. The clause also defines a reverse auction service provider as a commercial or Government entity that supplies the means to conduct the auction.
CO may use auction
The contracting officer may conduct a reverse auction to award an order under the contract or BPA. This is permissive authority, not a requirement, so the CO decides whether the method is appropriate for the acquisition.
Quote means participation
Submitting a quote or proposal in response to the solicitation for an order constitutes agreement to participate in the reverse auction. By responding, the contractor accepts the auction process and its rules for that order.
Price disclosure allowed
The Government may reveal offered prices to all offerors during the auction without revealing identities, except that the awardee’s identity may be disclosed after award. This supports competitive price reductions while preserving anonymity during the auction.
Withdrawal before close
A contractor or BPA holder may stop participating by withdrawing its offer, but it must notify the contracting officer before the auction closes using the contact method identified in the solicitation. Withdrawal after the close does not preserve participation rights.
Single-offer cancellation
If the reverse auction results in only one offer, the Government reserves the right to cancel the auction. This protects the Government from relying on a process that did not produce meaningful competition.
Information protection
If a reverse auction service provider is used, any price, proposal, or source selection information it receives must not be released outside the Government unless required by law. The clause also clarifies that the Government may still disclose offered prices to all participants without identifying who submitted them.
Protected information scope
Price or proposal information includes contractor bid or proposal information under FAR 3.104-1, similar information generated for task orders, delivery orders, or BPA orders, and contractor-marked restricted information that cannot be duplicated, used, or disclosed for purposes other than evaluating the price or proposal.
Responsibilities
Contracting Officer
Decide whether to use a reverse auction for an order under the contract or BPA; include and administer the auction process in the solicitation; identify the contact method for withdrawal; control disclosure of prices and identities; and determine whether to cancel the auction if only one offer is received.
Contractor
Treat submission of a quote or proposal as agreement to participate in the reverse auction; monitor auction activity and decide whether to continue bidding; notify the contracting officer before auction close if withdrawing; and understand that offered prices may be disclosed anonymously to other participants.
Blanket Purchase Agreement Holder
Follow the same participation, disclosure, and withdrawal rules as a contractor when responding to an order solicitation under the BPA; submit bids with awareness that participation is deemed accepted; and provide timely notice to withdraw before auction close if desired.
Government
Use the reverse auction process only as authorized for the order; disclose prices to participants without revealing identities; protect price, proposal, and source selection information; and ensure any third-party service provider does not release protected information outside the Government except as required by law.
Reverse Auction Service Provider
Provide the electronic or other means to conduct the auction and safeguard any price, proposal, or source selection information received in connection with the auction from unauthorized external disclosure unless disclosure is legally required.
Practical Implications
Contractors should assume that simply submitting a quote or proposal means they are opting into the auction process and its rules, so they need internal approval before responding.
Because prices are visible to competitors during the auction, bidders should be prepared for rapid price adjustments and should set clear floor pricing and bidding authority in advance.
If a contractor wants out, it must withdraw before the auction closes and use the exact contact method named in the solicitation; missing that deadline can leave the offer in play.
Contracting officers should make sure the solicitation clearly explains the auction mechanics, withdrawal method, and any platform-specific instructions to avoid disputes.
Both the Government and any auction platform must treat bid, proposal, and source selection information as sensitive; poor information control can create procurement integrity and protest risk.
Official Regulatory Text
As prescribed in 17.805 (b) , insert the following clause: Reverse Auction—Orders (Aug 2024) (a) Definitions. As used in this clause— Reverse auction means the process for obtaining pricing, usually supported by an electronic tool, in which offerors see competing offerors' price(s), without disclosure of the competing offerors' identity, and have the opportunity to submit lower priced offers until the close of the auction. Reverse auction service provider means a commercial or Government entity that provides a means for conducting reverse auctions when acquiring supplies or services to be used by the Government. (b) Reverse auction. The Contracting Officer may conduct a reverse auction to award an order under this contract or blanket purchase agreement. (c) Contractor agreement. When a reverse auction is conducted under this contract or blanket purchase agreement, the following applies: (1) The Contractor's or blanket purchase agreement holder's submission of a quote or proposal in response to the solicitation for an order constitutes agreement to participate in the auction. (2) The Contractor agrees that the Government may reveal to all Offerors the offered price(s) in the auction, without revealing any Offerors' identity, except for the awardee's identity subsequent to an award resulting from the auction. (3) The Contractor or blanket purchase agreement holder may withdraw its agreement to further participate in the reverse auction by withdrawing its offer. To withdraw an offer made in response to a reverse auction solicitation issued under this contract or blanket purchase agreement, the Contractor or blanket purchase agreement holder shall notify the Contracting Officer of the request before the close of the auction via the contact method identified in the solicitation. (4) If the reverse auction produces only one offer, the Government reserves the right to cancel the auction. (d) Release of information. The Government may use a reverse auction service provider to conduct the reverse auction. Any price or proposal information or source selection information received by the reverse auction service provider in relation to the reverse auction shall not be released, outside of the Government, unless otherwise required by law. However, this does not prevent the Government from revealing to all Contractors or blanket purchase agreement holders the offered price(s) in the auction, without revealing any Contractor or blanket purchase agreement holder's identity. Price or proposal information includes, but is not limited to— (1) Contractor bid or proposal information, as defined at Federal Acquisition Regulation 3.104-1 ; (2) Price or proposal information similarly generated for a task order or delivery order or an order under a blanket purchase agreement; and (3) Information identified by the Contractor or blanket purchase agreement holder as restricted from duplication, use, or disclosure—in whole or in part—for any purpose other than to evaluate the Contractor or blanket purchase agreement holder's price or proposal. (End of clause)