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Committee recommends code change to allow reverse auctions for certain city procurements
Summary
The committee recommended approval of Ordinance 2025-1137, authorizing reverse auction procurement under city code for bulk commodities such as paper and treatment chemicals and enabling use of the OpenGov reverse-auction tool.
The Governmental Operations Special Committee voted to forward Ordinance 2025-1137 to Council with a recommendation to approve an amendment to the city procurement code authorizing reverse auctioning under Virginia Code §2.2-4303.
Bernie Alvarez, director of the Department of Procurement Services, told the committee the change will add a procurement tool to solicit competitive bids in a reverse-auction format for bulk commodities such as paper, water-treatment chemicals and road salt. The city’s solicitation platform (OpenGov) includes a reverse-auction module that allows pre-qualified suppliers to submit descending bids until the bidding period closes.
Alvarez described the mechanics: suppliers enter bids on a specified line item, see that other suppliers are bidding (not their identities), and can lower their offer in timed increments until no further bids are placed. The city then assesses responsiveness and responsibility and awards the contract to the successful bidder. Alvarez said the approach is primarily intended for commodities and bulk items, not for complex professional services.
Committee members asked whether other localities in the region use reverse auctions and for examples of expected savings. Alvarez said he had used reverse auctions at another municipality and realized cost savings on selected commodities; he was not aware of nearby localities currently using the tool. A committee member asked staff to track and report realized savings if the practice is adopted.
No members of the public spoke at the hearing. The committee recorded affirmative votes by Council Member Gibson and Vice Chair Abubakar to forward the ordinance to Council with a recommendation to approve.
