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AGC Opposes Dept. of Veterans Affairs Reverse Auction Use for Procuring Construction Services

On June 12, to the U.S. Department of Veterans Affairs (VA) requesting the withdrawal of a decision to procure construction services using an online reverse auction. Specifically, the VA recently issued a solicitation for the “Installation of New 4 Ton Heat Pump at VAMC Murfreesboro” in Tennessee to be procured as a commercial item contract, rather than a construction services contract, using a reverse auction. AGC strongly advocates against the use of reverse auction procurement for construction services. In its letter to the VA, AGC notes that the complexities of these processes simply do not compare to the purchase of an off-the-shelf commercial item. The reverse auction process ignores the unique nature of construction. General contractors, specialty contractors, subcontractors and suppliers offer and provide a mix of services, materials and systems. They do not “manufacture” buildings, highways, or other facilities. To supplement its arguments, AGC shared its on reverse auctions for construction services procurement and the , highlighting why it abandoned the use of reverse auctions for procuring construction services nearly ten years ago. AGC also recently the use of reverse auction procurement for construction services before the House Small Business Committee.  AGC-backed legislation prohibiting the practice is currently under consideration for introduction this Congress. For more information, contact Jimmy Christianson at 703-837-5325 or christiansonj@agc.org.