FedBid

Buyer Frequently Asked Questions (FAQ)

Welcome to the Buyer FAQ section. This section provides quick answers to the most commonly asked questions and is not intended to provide a complete online tutorial. Should you desire a detailed demonstration of the FedBid marketplace or additional information that is not contained in this section, please contact us directly at clientservices@fedbid.com. The questions addressed are:

What is FedBid?

FedBid, Inc. provides FedBid® online procurement services, including Reverse Auction and associated support services, through The Buyer-Driven Online MarketplaceSM at www.FedBid.com. Focusing primarily on federal, state and local government agencies and associated prime contractors, FedBid is the leading online marketplace for public sector acquisition of commodities, from computer products, security gear and office supplies to tools, laboratory supplies and equipment. To date, more than 1,000 procurement professionals at dozens of federal organizations and associated prime contractors have used FedBid to procure over $1 billion worth of commodities and simple services.

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What is FedBid’s role in the market?

As the online marketplace where government buys commodities, FedBid satisfies a growing niche within the public sector procurement community, while complementing existing tools such as GSAAdvantage!, GSA e-Buy, DOD EMALL, and GWAC vehicles such as GSA Schedules, NASA SEWP III and NIH ECS III. The $100 billion niche consists of public sector purchases that are over $2,500 in value, are available from multiple sources of supply, and are for commercial items (commodities). FedBid is designed specifically for the public sector environment and interfaces with mandatory systems such as www.FedBizOpps.gov and the Central Contractor Registration www.CCR.gov. FedBid enables users to compete and document their purchases under any of the following procurement scenarios:

  • Competition among members of an existing multiple-award contract supplier community (e.g., GSA Schedules, Blanket Purchasing Agreements, government-wide acquisition contracts, AbilityOne, etc.);

  • Competition for set-aside purchases among suppliers within a particular socio-economic classification (e.g., Small Business, HUB Zone, Small Disadvantaged Business, 8(a) Business, and Service Disabled Veteran-Owned Business); or

  • Competition among interested registered suppliers utilizing automated data feeds to FedBizOpps.gov for synopses, as required.

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Is FedBid the same as FedBizOpps?

No. FedBid is a privately held company that provides an online marketplace where government buys commodities. FedBizOpps (FBO) is a government-run, online bulletin board. However, FedBid does maintain automated feeds to FBO in order to enable federal government Buyers to meet FAR requirements regarding opportunity notification.

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What is a Reverse Auction?

A Reverse Auction is where a Buyer solicits bids from interested Sellers and those Sellers have the opportunity to submit a single bid, or multiple bids that decrease in price. On FedBid, Sellers do NOT see the competitors’ names or prices but do see a bid status of either LEAD or LAG, depending on their price ranking.

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Is FedBid a Request for Quote (RFQ) System?

FedBid is not a quote-based system. Under the FAR, a “quote” is not an offer, and is, therefore, non-binding on the seller. Under the FedBid Terms of Use, which have been approved by the federal government and are specifically referenced in FedBid’s GSA Schedule, all bids submitted through FedBid are binding offers. In addition to being generally permitted under FAR 1.102 and specifically permitted under FAR 13.003(g), which allows for “any appropriate combination” of certain named FAR Parts, including FAR 14 (with respect to the concept of binding “bids”) for simplified acquisitions, FedBid’s system requires bids to be binding offers for a 2 primary reasons: i) Buyers must be able to have confidence that each Seller is able to deliver according to its bid in order to ensure as efficient a procurement process as possible; and ii) Sellers must be able to bid with confidence that their bids are not being unfairly driven down by competitors that have no intent to deliver; in order for FedBid’s patented auto-rebid feature to work effectively and fairly for buyers and sellers, all sellers must be required to deliver at their offered price.

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Are Reverse Auctions legal?

Yes. Federal Acquisition Regulations (FAR) no longer prohibit auctions and, in fact, encourage innovative procurement techniques such as Reverse Auctions. In addition, within the last few years, the federal government has explicitly embraced e-commerce initiatives through legislation, such as the E-Government Act of 2002 (PL 107-347), and policy memoranda, such as a May 12, 2004 memo, issued by Office of Procurement Policy and linked on FedBid’s Home page, which encourages agencies to utilize commercially available online procurement tools, including reverse auctions. In 2005, both GAO (MTB Group, Inc., B-295463) and the Court of Federal Claims (MTB Group, Inc. v. United States) upheld the validity of reverse auctions in federal procurement.

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What is a Buy?

A Buy is a procurement made through FedBid, using either FedBid’s Reverse Auction or Single Bid Only functionality. Single Bid Only competitions limit each Seller to submitting ONLY one (1) Bid during the entire duration of the Buy.

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How long does a Buy last?

The Buyer determines the duration of the Buy, but the competition process typically last three to four calendar days, depending on the availability of the items sought. Timeframes have a tendency to shorten throughout the federal government’s last fiscal quarter (July-September).

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What if I don’t like the items offered in the Bids?

FedBid is virtually risk free: You have multiple opportunities to fully specify and confirm your requirements; You can cancel the Buy at any time prior to award if you determine that the specifications need to be corrected or if the Bids are unsatisfactory; and FedBid’s Client Services will continue to support you throughout the Buy process.

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How do I register as a Buyer?

Contracting officers, contract specialists, procurement officers, credit/purchase card holders and other authorized Buyers can easily register on FedBid. The process requires the Buyer to submit i) a valid e-mail address, ii) security question and password information, iii) contact information, and iv) agency or business affiliation.

  1. Go to www.fedbid.com and click ‘Buyer Sign In’.
  2. On the Buyer Log In page, click ‘Continue’ in the Create an Account box.
  3. Complete the New Buyer Registration form and click ‘Continue’.
  4. On the confirmation page review all information entered. If changes need to be made, click ‘Edit’. If the information is complete and correct as entered, click ‘Submit Registration’.
  5. FedBid will review the Buyer registration and will contact the Buyer in order to ensure the Buyer i) has requisite authority to perform procurement actions, and ii) will be working within his or her applicable warrant, procurement, or credit/purchase card authority.
  6. FedBid will then activate the Buyer account and send to the Buyer an e-mail with a link for creating a password and security question. After creating these two items, the Buyer can begin using FedBid.

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How do I sign in?

Go to www.fedbid.com and click ‘Buyer Sign In’. In order to sign in to FedBid, all users are required to enter their e-mail addresses and passwords in the corresponding fields on the Buyer Log In page and indicate their acceptance of the FedBid Terms of Use. Please remember that e-mail addresses and passwords are case sensitive; therefore, information must be entered exactly as it was entered during registration. Users may click ‘Forgot your password?’, located under the Log In fields, for automated assistance.

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How do I create a Buy?

Creating a Buy is fast and easy. The process takes approximately 10 minutes for the average purchase requirement. The process consists of a few simple steps:

  1. Once signed in, click on the ‘Create Buy’ tab located at the top of the screen.
  2. Input Buy Description, Internal Description and Solicitation Number (Internal Description and Solicitation Number are for internal use only and will not be viewed by Sellers); determine the bidding end date and time; choose the Contract Type under which you would like to receive bid responses; determine desired Set- Asides that will be allowed to view and bid on the buy; decide whether the Sellers should bid exact match to specification or ‘meet or exceed’ (Brand name or equal); select Payment Type from options for using a purchase order or purchase card; and Click ‘Continue’.
  3. Select the desired category and subcategory by clicking on the appropriate link.
  4. Select Competition Type (Reverse Auction versus Single Bid); Set the Bid Decrement (the minimum amount by which a Seller must lower its bid in order to re-bid); Input Total Target Price (IGE) and choose whether or not to make it active; add Line Items including line item description, quantity, and unit of measure for each; and click ‘Continue’.
  5. Define the terms of the Buy.
  6. Add any suggested sources that you would like to specifically include in the Buy, and click ‘Continue’.
  7. Assign a shipping address. If the desired shipping location is not in the drop down list, add the address by clicking on ‘Manage Address Book’ and click ‘Continue’.
  8. Confirm your information. If there is a need to edit the auction specs, click on ‘Edit’ to return to previous pages; otherwise, click ‘Post Buy’, and your requirement will be posted to the applicable Seller community.

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Can I add an attachment?

Yes, Buyers may attach statements-of-work (SOWs), drawings, or forms to a Buy during the Create Buy process. By clicking ‘Add Attachment’ at the bottom of the Add to Auction page, Buyers can add various document file types, including Microsoft Word (.doc), Microsoft Excel (.xls), Microsoft PowerPoint (.ppt), and Adobe (.pdf). (Attachments must NOT exceed 2MB is size, and Buyers must be activated by FedBid to have access to this feature.)

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Can I modify a Buy?

Yes, but only through FedBid’s Repost process. In order to maintain the integrity of the procurement process and ensure that all Sellers have access to the same information at the same time, Buyers are NOT permitted to modify a Buy once it is posted. However, Buyers may Repost a Buy, which cancels the initial Buy and creates a new one, allowing for updated specifications and/or clarifications to be communicated to the Seller community. Buyers are required to view the Buy Specifications by clicking the ‘Buy Description’ link, which will display the current Buy and provide a ‘Repost’ button on the right side of the screen. Once a Repost is submitted, FedBid will e-mail Sellers to inform them of the cancellation and Repost.

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How do I accept a Bid?

To accept a Bid, simply click ‘I Accept’, located at the bottom of each Bid. Once accepted, you will be required to enter the appropriate Authorization Number, typically the purchase order, purchase requisition, or credit card reference number.

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Can I solicit Partial Bids?

Because Reverse Auctions are price-driven, Partial Bids fundamentally interfere with Bid rankings and the dynamics of the Reverse Auction Process. Therefore, Partial Bids and IFBs permitting Partial Bids are not permitted under a Reverse Auction process and will be removed from the Web Site. If Buyers find it necessary to solicit Partial Bids under a given Buy, they must use the Single Bid Only process and specifically permit Partial Bids in the associated IFB.

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Is FedBid compliant with Federal Acquisition Regulations (FAR)?

Yes. FedBid meets all requirements of the Federal Acquisition Streamlining Act of 1994, governing simplified acquisitions and micro-purchases, and all FAR requirements governing auctions, including the requirement to maintain anonymity throughout the auction process. FedBid retains attorneys experienced in government contract law to assure full compliance with FAR and all other applicable regulations.

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Does FedBid help fulfill FAR requirements for multiple bids, reasonable price, and fair competition?

Yes.

  • Fair and open competition: FAR intent is satisfied when two or more Sellers participate in a public auction. Determining the acceptability of the competition is always in the Buyer’s hands. When bidding ends, the Buyer has the option of accepting or canceling the procurement.

  • Establishing fair market price and conducting a cost analysis: Receiving multiple Bids fulfills these requirements. FedBid Buys are open to thousands of qualified Sellers, making FAR compliance easy and virtually assured.

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Does FedBid comply with FAR, Subpart 9.5, relating to Conflicts of Interest?

Yes. FedBid provides online procurement services to public sector Buyers and Sellers through a simple and extremely effective online Reverse Auction tool. FedBid does not provide to the government any other type of service, nor does FedBid engage in any formal or informal relationship with any Seller outside of the limited contractual relationship required to provide such Seller with access to FedBid’s procurement and payment services. Moreover, any subcontractor from which FedBid procures operational support services is prohibited from bidding on any Buy posted on FedBid.

FedBid warrants to the best of its knowledge and belief, that no person associated with FedBid, including any individual, subcontractor, team member, consultant, corporation, partnership, joint venture, or other business entity, has any conflict of interest that would cause FedBid to be unable or potentially unable to render impartial assistance or advice to the government, impair FedBid’s objectivity in providing services, give FedBid an unfair competitive advantage, or otherwise affect FedBid’s ability to perform the online procurement and payment services required by the government. As part of FedBid’s annual independent audit and review, FedBid’s independent auditor evaluates for accuracy the foregoing statement, and FedBid will report any changes and/or updates to this information based upon the findings of said auditor.

Should you require any additional information or certifications, you may contact FedBid at clientservices@fedbid.com.

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Does FedBid safeguard sensitive government information?

Yes. FedBid does not disclose unclassified but sensitive government information or data to any party other than those personnel specifically authorized to receive such information or data. In addition, to ensure that the security and confidentiality of sensitive information and data is properly protected, FedBid performs background checks on all of its employees, requires all managers and employees to sign non-disclosure agreements, and employs a state of the art, secure infrastructure that prevents electronic theft or misappropriation of sensitive information. When no longer required, FedBid will return all sensitive information and data to the government’s control, or we will destroy or hold it, as directed by the government.

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How does FedBid address 508 Compliance?

FedBid’s website utilizes pure HTML for the data presentation layer in order to improve data transmission speeds and improve accessibility for people with disabilities. The pure HTML design improves accessibility and helps with Section 508 (of the Rehabilitation Act) compliance in two ways: 1) the website does NOT use animated graphics, thereby, reducing potential accessibility problems for users with disabilities, and 2) since HTML inherently provides “ALT Text” tags for all graphics, the structure exists to deliver verbal tags for every component or feature of the website. The EIT standard can be found at: www.Section508.gov.

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Why do the FedBid Terms of Use prohibit offline bids?

The guiding principles of federal procurement appear in Part 1 of the Federal Acquisition Regulations (FAR). Among those principles are requirements that the Federal Acquisition System and the team members within that system operate with “integrity, fairness, and openness” (FAR 1.102(b)(3); 1.102-2(c)(1)) and “ensure that contractors receive impartial, fair, and equitable treatment” (FAR 1.602-2(b)). Applying these principles in a long line of bid protest decisions, GAO has established as fundamental to competitive procurements that offerors must be treated equally and given a common basis for the submission and evaluation of proposals. (Union Carbide Corporation, 55 Comp. Gen. 802 (1976); Host International, Inc., B-187529, May 17, 1977, 7-1 CPD 346; COHU, Inc., 57 Comp. Gen. 759 (1978); Federal Data Corporation, 60 Comp. Gen. 584 (1981); E.C. Campbell, Inc., B-222197, 86-1 CPD 565). With respect to procurements conducted through reverse auctions, in particular, GAO has noted the importance of having unambiguous ground rules (Royal Hawaiian Movers, Inc., Comp. Gen Dec. B-288653, October 31, 2001).

FedBid’s prohibition of offline bids helps Buyers maintain the integrity, fairness and openness of the competitive process by enabling Buyers to conduct all procurements pursuant to uniform ground rules that treat all Sellers impartially, fairly, and equitably. In turn, Sellers have confidence that they are able to compete on a level playing field that truly rewards best value bidding.

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What should I do if I receive an offline bid that may provide best value?

Immediately direct the offline bidder to submit its Bid online. With FedBid, Seller use of the online marketplace is free of charge and registering with the site takes only a few minutes, so Seller compliance hurdles are minimal. However, if the offline bidder is unable to register and submit an online Bid prior to the close of the reverse auction, the Buyer maintains the option to extend the Buy in order to enhance competition. (Fort Biscuit Co., 71 Comp. Gen. 392 (1992), 92-1 CPD 440; Varicon Int’l, Inc.; MVM, Inc., B-255808; B-255808.2, Apr. 6, 1994, 94-1 CPD 240). Using FedBid, Buyers can extend a Buy for up to two (2) weeks after a Buy closes, thereby providing the Buyer with every opportunity to obtain the best value offer for its requirements.

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