Section 25C: Electronic Reverse Auction
This section is inserted by Act No 15 of 2021, section 73.
consolidated text (as at 2018, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
25C. Electronic Reverse Auction
(1) (a) A public body may resort to the electronic
reverse auction method of procurement for goods, works
or non-consultancy services through the electronic
procurement system, provided that the procurement –
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(ii) the subject matter of the purchase
and requirements are suitable for
simple bidding processes where
evaluation is solely in terms
of price.
(b) A procurement which includes multiple
variables and qualitative factors shall not be subject to
electronic reverse auctions.
(2) For the purpose of the electronic reverse auction
method of procurement –
(a) a public body shall –
(i) invite all registered suppliers in a
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(ii) advertise its requirements on the
electronic procurement system and
its website, including the time limit
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(b) the prices of bidders within the scheduled
time shall be visible to other bidders,
without revealing the identity of a
bidder; and
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bid upwards within the scheduled time.
(3) Subject to the reserve price set by the public
body, the successful bid shall be the bid with the lowest
price at the deadline for the submission of bids.
Acts 2021 431
(d) in section 40(2), by deleting the words “as may be prescribed”
and replacing them by the words “as may be prescribed
or where the selected procurement method includes
negotiations”;
(e) in section 46(1), by repealing paragraph (i) and replacing it
by the following paragraph –
(i) the provisions for termination of
the contract, including the grounds
on which the contract may be
terminated and the procedures
applicable on termination;
(f) in section 48, by adding the following new subsection, the
existing provision being numbered as subsection (1) –
(2) Notwithstanding any other enactment, a public
body or a contractor may terminate a contract where the other
party to the contract commits a fundamental breach of the
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(g) in section 51(1)(e), by deleting the words “including bidders’
proprietary information” and replacing them by the words
“including bidders’ proprietary information, except where
disclosure is required by an
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(g) in section 51(1)(e), by deleting the words “including bidders’
proprietary information” and replacing them by the words
“including bidders’ proprietary information, except where
disclosure is required by an investigatory body vested with
powers of investigation, including the Independent Commission
against Corruption, Competition Commission or Police”.
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Questions this section answers
- Can a public body use an electronic reverse auction for a procurement involving multiple qualitative factors?
- Is the winning bid in an electronic reverse auction the one with the lowest price at the deadline?