NCJ Number
217445
Journal
FBI Law Enforcement Bulletin Volume: 76 Issue: 1 Dated: January 2007 Pages: 12-14
Date Published
January 2007
Length
3 pages
Annotation
This article discusses the advantages and disadvantages of a law enforcement agency using an "e-sourcing" (online) auction in order to increase the efficiency and decrease the costs of purchasing equipment.
Abstract
There are two main types of e-sourcing events. Online "reverse" auctions have only one buyer but many sellers. A buyer initiates reverse auctions by distributing purchasing specifications. Suppliers compete against each other in Web-based, real-time auctions to win the buyer's business. This drives down the price. A "forward" auction, on the other hand, has one seller but many buyers, who bid for the product or service. When law enforcement agencies need new vehicles or other equipment, using an online reverse auction could expedite the purchasing process, possibly attract new vendors, and result in lower prices. An agency could contract with an e-sourcing company to host and conduct the reverse auction. The agency would provide the e-sourcing company with the specifications, suggested vendors, and a region from which to draw them. The company might suggest expanding the vendor list nationally or even globally. Law enforcement organizations also have the option of purchasing the necessary software and conducting these auctions themselves. Potential disadvantages of e-sourcing include vendor reservations about the process that will limit their participation. Also, law enforcement executives must consider the political ramifications of online contract awards to out-of-State vendors. In addition, some jurisdictions have laws or codes that may prevent these types of auctions, although jurisdictions are changing policies rapidly in order to allow them.