WASHINGTON—Today, House Committee on Oversight and Reform Ranking Member James Comer’s (R-Ky.) legislation, the Construction Consensus Procurement Improvement Act of 2021 (H.R. 26), was signed into law. This legislation ends reverse auctions for complex design and construction services.

 

“Reverse auctions for complex design and construction services fail to meet the needs of the American people because they do not ensure the best products at the best price. With the Construction Consensus Procurement Improvement Act signed into law, that practice will soon come to an end. Every time taxpayer dollars are spent, they must be spent properly and responsibly,” said Ranking Member James Comer.

 

The Construction Consensus Procurement Improvement Act prevents the federal government’s use of reverse auctions for complex design and construction services. Reverse auctions allow the sellers to bid down the price of a project. Use of reverse auctions typically results in the contractor with the lowest bid winning the contract. In the case of complex design and construction projects, a reverse auction fails to factor in several substantial variables about the project. Many of these contracts have actually cost taxpayers substantially more money than the contract originally intended due to unanticipated complications and time overruns. Reverse auctions in other areas of the federal government, such as with purchasing products, have proven to be effective. As a result, this legislation ensures reverse auctions are still available to be used for those types of acquisitions.