Right now when items need to be purchased, the city issues a request for bids, and then they buy from the first company offering a lower bid.
Reverse auctioning would allow sellers to compete until the lowest price is reached, and then the city would be able to give the contract to the company presenting the lowest price possible. It could save the city $3 million annually.
Reverse auctioning has been successful in both Los Angeles and Chicago's public and private schools.
"Awarding contracts with this new tool means the city will pay the lowest possible price for supplies. It could mean millions of dollars in savings each year that can go for other vital purposes - including expansion of pre-K for our youngest students." Mayor Kenney