Prohibiting Construction Reverse Auctions

January 7, 2021

AGC-Backed Bill Passes House

On January 5, the AGC-backed bill, H.R.26 - Construction Consensus Procurement Improvement Act of 2021, which would severely limit federal agencies from procuring construction services through reverse auctions passed the House of Representatives. AGC expects the Senate to pass the bill in the coming weeks. Reverse auctions in federal contracts typically require contractors to bid against each other in real time with ever increasing lower prices in order to win a particular contract. Several federal agencies have advised against this practice due to the administrative burden it requires, as well as acknowledging that the guaranteed low price at time of bidding often does not mean the project will be lower in cost at the close. AGC supports commonsense procurement reform to improve the delivery of federal construction services, and that benefit the government, taxpayers, small businesses, and the entire construction industry.

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