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November 8, 2015 12:00 am

$1 Bid Wins Government Open Source Software Purchasing Experiment

An anonymous reader writes: A couple weeks ago we discussed a project from a software team within the U.S. General Services Administration. Its goal was to set up a portal to let developers bid on the creation of open source code needed by the government. From the beginning, they said it was an experiment, and now the results are in from their first project. The project was quickly bid all the way down to $1, and on Wednesday, the winner delivered a functional solution that met their criteria. They say, "When we received the $1 bid, we immediately tried to figure out whether it was intentional, whether it was from a properly registered company, and whether we could award $1. We contacted the bidder and we confirmed that the bid was valid, that the registration on SAM.gov was current, and that the bid would be the winning bid. It was a plot twist that no one here at 18F expected. This unexpected development will no doubt force us to rethink some of our assumptions about the reverse-auction model." Despite their surprise, the team feels this is proof that the system can succeed. They're now working to refine the process.

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