What is an Electronic Auction?
An electronic auction (also: e-auction, reverse auction) is an iterative electronic procedure in public procurement where bidders can adjust their prices or other quantifiable criteria in real time.
Legal Framework
- Section 25 VgV: Electronic auctions above EU thresholds
- Art. 35 Directive 2014/24/EU: EU directive on electronic auctions
How It Works
- Regular tender procedure
- Initial evaluation of submitted bids
- Invitation to all eligible bidders for the e-auction
- Auction rounds: bidders can lower prices in real time
- Award to the most economically advantageous offer
Conditions
- Must be announced in the contract notice
- Only for quantifiable criteria (price, quantities, times)
- Not allowed for intellectual services (architecture, consulting)
- Bidders see their rank but not competitors' identities
Benefits
- Price transparency through competitive pressure
- Efficiency: price determination in hours
- Typical savings of 5–15% compared to static offers
How Patterno Helps
Patterno notifies you about tenders involving electronic auctions, so you can prepare your pricing strategy for these dynamic procedures.