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How Cities Are Using “Reverse Auctions” To Save Money

Nathaniel Hamilton
/
Newsworks

 

Think, for a minute, about everything it takes to keep a city running. You need people of course — the mayor, the budget director, bus drivers, teachers, and so many others.

But you also need things like trucks, snow chains, paper, and pencils. Typically, cities buy these products by asking companies what price they're asking for. 

Each company sends the city a "bid," a proposal that says what the company charges for a certain item. Maybe a pencil manufacturer says it'll charge the city 20 cents a pencil. Then city looks the bids over and awards the contract to the lowest "responsible" bidder. 

Philadelphia is about to start doing things differently, at least for some of its purchases. In June, it'll launch "reverse auctions."

Read the full version of this reportat Keystone Crossroads' websiteKeystone Crossroads is a new statewide public media initiative reporting on the challenges facing Pennsylvania's cities. WPSU is a participating station.

 

 

Marielle Segarra was WHYY's Keystone Crossroads reporter. She reported for the multi-station partnership on urban policy, crumbling infrastructure and how distressed Pennsylvania cities are bouncing back. As a freelance radio reporter, her stories have also aired on Latino USA, WNYC, WBUR and other NPR member stations.