On Jan. 16, Reps. Ro Khanna (D-Calif.) and Mark Meadows (R-N.C.) introduced bipartisan, AGC-backed legislation to prohibit federal agencies from using reverse auctions on federal construction contracts. On Dec. 19, the Senate unanimously passed a companion bill to this measure. Reverse auctions in federal contracts typically require contractors to bid against each other in real time with ever increasing lower prices in order to win a particular contract. Several federal agencies have advised against this practice due to the administrative burden it requires, as well as acknowledging that the guaranteed low price at time of bidding often does not mean the project will be lower in cost at the close. AGC supports commonsense procurement reform to improve the delivery of federal construction projects.
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