Integrating Electronic Reverse Auctions into Defense Procurement: Exploratory Research on Opportunities, Issues, Processes, Risks and Cultural Implications
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Authors
Coyne, Adam
Collins, Michael
Subjects
Electronic Reverse Auction (e-RA)
Electronic Reverse Auctions, e-RA, National Culture, Technology Adoption, Procurement Policy, Strategic Sourcing Strategy
Electronic Reverse Auctions, e-RA, National Culture, Technology Adoption, Procurement Policy, Strategic Sourcing Strategy
Advisors
Date of Issue
2009-12-01
Date
01-Dec-09
Publisher
Language
Abstract
This case study explores the first and only electronic reverse auction (e-RA) conducted by the United States Air Force (USAF) in Kuwait and addresses both theoretical gaps in e-RA knowledge and practitioner gaps within the Department of Defense (DoD). Qualitative research based on a single case study explored 1) cultural implications of conducting an e-RA in the Middle East and 2) procedures DoD contracting officers could follow to use e-RAs for stateside and contingency procurements''and expected savings from doing so. Findings suggest that Middle Eastern sellers with a cultural disposition to avoid risky technology-based acquisition participated in the USAF auction because they trusted the USAF more than buyers in the local market. Sellers also felt increased satisfaction with the e-RA even when they did not win because the process increased fairness, transparency and reduced the negative effects of wasta (i.e., using connections or influence) and the general Arab business climate of distrust, unfairness, and favoritism. Secondly, a detailed spend analysis of FY07''08 USAF spend data, extrapolated across the DoD, suggests the DoD is leaving billions of dollars on the table by not using e-RAs. Drawing on the results, implications for theory and practice are explicated. Finally, study limitations are disclosed, and opportunities for future research are identified.
Type
Technical Report
Description
Sponsored Report (for Acquisition Research Program)
Series/Report No
Department
Contract Management
Graduate Student
Identifiers
NPS Report Number
NPS-CM-09-125
Sponsors
Naval Postgraduate School Acquisition Research Program
Funding
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.