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Departments: Procurement

Volume 463: debated on Wednesday 12 September 2007

To ask the Chancellor of the Duchy of Lancaster what estimate he has made of the savings accrued as a consequence of the use of reverse auctions as a procurement mechanism by his Department; and if he will make a statement. (155235)

Reverse auctions have not been used so far as a procurement mechanism in my Department.

Due to the nature of the Cabinet Office’s procurement, the scope for exploiting the benefits of reverse auctions is limited. Where suitable opportunities arise, and the benefits would outweigh the costs, a reverse auction would be employed as the procurement mechanism.

The Cabinet Office makes extensive use of collaborative frameworks set up by other Departments where reverse auctions have been used. This will enable the Department to derive the benefits of savings in future.