IRS lowers PC costs by using reverse auction

IRS lowers PC costs by using reverse auction

The IRS this month saved 49 percent on desktop and notebook PCs in a reverse auction, agency officials said.

The IRS awarded a $63.4 million contract to PlanetGov and Dell Computer Corp. for 11,362 desktop PCs and 16,354 notebooks to be installed over an eight-month period, said Brian Nightingale, senior vice president of sales and marketing at PlanetGov of Chantilly, Va.

The prebid pricing started at $130 million, said Dan McLaughlin, director of information systems acquisition at the IRS Procurement Office.

Ariba Inc. of Mountain View, Calif., a business-to-business electronic commerce software developer, conducted the online auction.

Three vendor teams made the final cut: PlanetGov and Dell, Government Acquisitions Inc. of Cincinnati bidding with Gateway Inc., and Presidio Corp. of Lanham, Md., teaming with IBM Corp. All vendors holding blanket purchasing agreements with the IRS submitted technical proposals, Nightingale said.

'P. Vasishtha


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