What categories, goods or services are most suitable for e-auctions?
The categories most suitable for e-auction are those where: • the product or service can be clearly specified, ideally in the form of outputs • the major part of the whole-life cost of the contract can be built into the auction • the supplier cannot simply downgrade or alter the specification supplied to meet a lower price point • the contract will not consist primarily of low wage labour • market prices are reasonably stable for the goods or services • there will be strong and genuine competition between suppliers. (Factors beyond the number of suppliers may also determine whether there will be sufficient competition.) • The e-Auction Readiness Tool will help further with an assessment.
