Open Procurement is an open-source software toolkit designed for automating and optimizing procurement processes, featuring a central database, API access, and an auction module for public and commercial procurements. It uses reverse auctions where sellers compete to offer the lowest price, which benefits buyers by reducing costs and improving market efficiency. The auction process involves multiple rounds of bidding, allowing for transparency and ranking of bids until a final decision is made.

1. Open Procurement
https://quintagroup.com
https://openprocurement.io
https://github.com/openprocurement
AUCTION MODULE
Toolkit

2. Open Procurement -
is an open source software toolkit
developed for procurement automation and
optimization.
The toolkit can be used for:
● public procurements
● commercial solutions

3. Open Procurement consists of:
● Central database (CDB)
● API - REST-ful interface that provides programmatic access
to the CDB.
● Auction module
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4. System’s architecture

5. 5
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is divided into
1. PROCUREMENT INITIATION
2. BID REGISTRATION
3. REVERSE AUCTION
4. QUALIFICATION
5. COMPLETION
stages:
Procurement process

6. The electronic reverse auction
A reverse auction is a type of auction in which the roles of
buyer and seller are reversed.
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In an ordinary (forward) auction, buyers compete to obtain a
good or service by offering increasingly higher prices.
In a reverse auction, the sellers compete to obtain business
from the buyer and prices will typically decrease as the sellers
undercut each other.

7. The main benefits of reverse auction:
● The buyer is the primary beneficiary
● Reduction of purchasing costs
● Increased efficiency in the market
● Enhancement of the procurement process
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8. $
Why the reverse auction?
Suppliers compete to sell goods to the procuring entity at the lowest
price. This mechanism significantly reduces the cost of
product/service and allows buyer to compare prices, qualifications,
and other factors at a glance.
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When Auction module is initiated, auction page where users can
monitor the auction progress is created.

9. The auction page displays:
● ID (identifier) of the auction
● Name of procuring entity
● Procurement subject
● Step reduction of bid
● Start value
● Time count
● Language options
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10. The auction page
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11. ● Upon the auction start there is a pause for 5 minutes to let the bidders learn
the bid values of their competitors.
The auction START
● Once the period for procurement initiation and bid proposals registration
ends, auction starts automatically on the pre-announced date and time.
● The system discloses initial bid values of participants
(anonymously displayed).
● Once the 5-minute pause ends the system automatically
announces the first round.

12. 5-minute pause before the auction
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13. Individual Auction page
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eMalls give bidders access to their
individual web pages of the auction.
Apart from the information available
for all users, there is a field where
they can make their bids.

14. The first round. Bidder’s individual auction page
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15. t
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In each round bidders take turns in descending order of their
previous bid values (starting from initial).
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Auction consists of three rounds:
Each bidder has 2 minutes to enter bid and can
change it if the allotted time hasn't run out. If the
participant was inactive for 2 minutes, system will
accept his bid and pass the turn to the next participant.
When all participants have made their bids,
system pauses for
2 minutes and announces the next round.
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16. The first round

17. The second round results
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18. The third round. Bidder’s individual auction page
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19. Ranking
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System ranks all submitted bids automatically by price, forming rating
of bidders positions.
After the third round system discloses complete
information about bid proposals and participants who
submitted them.

20. 20The results announcement and participants disclosure

21. ● Free and open source toolkit
● Reliable technology
● Based on Open Contracting standards
● Easy-to-use transparent procedures
● For both free and proprietary solutions
Advantages of
Open Procurement System
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22. Find more information at:
Project website: https://openprocurement.io
API Documentation: http://api-docs.openprocurement.org
Code repository: https://github.com/openprocurement
Open Procurement case:
https://quintagroup.com/cms/cases/openprocurement