Daniel Gordon Testifies on Reverse Auctions

Daniel I. Gordon, Senior Adviser to the Government Procurement Law Program, testified before the House of Representatives Committee on Small Business about "reverse auctions." In these auctions, companies submit bids for government work through a third party company, FedBid, which collects a fee for each contract awarded. Critics, including Mr. Gordon, say that this system does not always act in the best interests of the government. FedBid "has an organizational conflict of interest," said Daniel I. Gordon, a former top Obama administration procurement official. "They have a financial interest in having as many reverse auctions as possible. Regardless of whether it's suitable, they get a fee."