e-Auction is a part of the strategic sourcing process. It is a procurement tool using web-based software that allows suppliers to bid online for a contract for the supply of goods or services. It is sometimes called a ‘reverse auction’ because bids are reduced and not increased as in a traditional auction. The objective is typically to arrive at the lowest total cost as distinct from lowest price.
The e-Auction process has been piloted in the State Enterprises and has seen much success. The strategic plan for e-Auctions for the upcoming financial year will be scheduled structured events throughout the year. At this time, a Financial Expenditure Analysis is underway to assist in determining the items where greatest savings can be realized in the short term.
An eAuction for Personal Protective Equipment (PPE) for State Enterprises has just been completed showing initial savings of over 40% on traditional prices. Suppliers for these events also take advantage of the collaborative quantities of purchase through these eAuction Events.
State Agencies participating in the PPE E-Auctions were:
- Water and Sewerage Authority (WASA)
- Petroleum Company of Trinidad and Tobago (Petrotrin)
- South West Regional Health Authority (SWRHA)
- Evolving Technologies and Enterprises Company Limited (ETeck)
- Point Lisas Industrial Port Development Company Limited (PLIPDECO)
For further information contact:
- The Investment Division (Ministry of Finance) – Phone: 612-9700 ext. 2514 Fax: 623-6338