Construction not a commodity.

In its final report on the reverse bid auction pilot program released July 26, the United States Army Corps of Engineers stated that reverse auctions should not be used as a means to procure construction services. The report further referenced last year's Office of Federal Procurement Policy memo stating that construction repair and alterations should not be considered commodities.

The Corps noted that reverse bid auctions may have significant potential when used to procure commodity goods or very simplistic services where the critical issue of variability is very small or nonexistent. The report went on to say that they found no proof that reverse bid auctions provided a significant or marginal edge over the sealed bid process for construction projects. There was no valid measurement method to project any claim of savings from reverse bid auctions.

Agreeing that construction services may not be equated to commodities due to having too many variables, the USACE report highlights that FAR Part 36 (sealed bids) is the most appropriate acquisitions method for construction services.