Rules of e-auction

I. Interpretation of terms

Auction rules define basic relations and processes arising within preparation and complete realization of standard on-line competition.

In case of other forms - different from standard competition conditions, all members of e-auction are informed (usually via e-invitation letter) about differences in the rules.

Basic terms of the rules are defined as follow:

  • on-line competition: knows as e-auction, is a dynamic on-line comparison of current supplier possibilities. During e-auction all participated members are able to directly respond to changes of competitor’s offers by modification of their own offers within defined time. The responses to enunciator’s demand are presented in shared mode of comparative table placed on the web called e-auction room or virtual auction room. Due to the fact number of competitions oriented to purchase is significantly higher against competitions oriented to sell, we use term comparison of “supplier possibilities” and it is considered that in case of e-auctions oriented to sell the person is customer (buyer) instead of the supplier.
  • e-auction room: is electronic area where suppliers answer through their offers to enunciator’s demand (in case of e-auction oriented to sell - enunciator’s offer). The e-auction room is placed on specified web link.
  • e-auction enunciator: (in case of public contracts regulated by statute is called contracting authority), is a person who declares his intention to buy subject of the competition and defines conditions, method and time for evaluation, next also defines persons responsible for e-auction process including administrator and all necessary contacts. In case of e-auction oriented to sell means that enunciator declares his intention to sell.
  • supplier: (in case of public contracts regulated by statute is called applicant) is a person who within on-line competition sells and modifies his price and all other conditions according to enunciator’s (contracting authority) requirements or in response to changes in offers of other competitors in the system. In case of e-auction oriented to buy it is supplier, in case of e-auction oriented to sell it is customer (buyer).
  • administrator: is a person working on enunciator’s (provider’s) side who is in charge of preparation, realization and evaluation of on-line competition.
  • subject of e-auction: is required (in case of sale - offered) goods or service by enunciator within e-auction.
  • entered conditions: requirements for quantity, quality, payment terms, time frame and others conditions, which are defined by enunciator and supplier‘s ability (in case of sale – buyer’s ability) to meet them is a basic prerequisite to be participated in on-line competition.
  • competition round: on-line comparison of all offers and their constant evaluation within defined time.

II. e-Auction enunciator

e-Auction enunciator is obligated his declared interest to negotiate price and terms of contract for purchase of e-auction subject is serious, unless otherwise stated in advance.

  1. Creation of e-auction room

    Enunciator or him authorized provider creates e-auction room on defined web page.

  2. Creation of e-invitation letter for participation in e-auction

    e-Invitation letter is created by enunciator. There is specified subject of e-auction – goods or service what enunciator is interested in including information about total volume and time-frame of the contract, next entered and optional conditions complete with date and time of e-auction, its time schedule or rules for possible extension of its duration, web link of e-auction room and also contact to administrator.

    In cases when enunciator is represented by provider, the enunciator ensures handing over all information necessary for creation of e-invitation letter to the provider and makes the e-invitation letter authorized.

  3. Sending out of e-invitation letters

    Enunciator himself or through the provider sends out e-invitation letters to e-mail addresses of all suppliers (in case of e-auction oriented to sell - buyers) who could (in his opinion) best meet qualification and capacity for realization of defined deal.

    In case, when the enunciator is represented by the provider, the e-invitation letter is sent out to list of suppliers authorized by the enunciator.

  4. Process of e-auction
  5. Enunciator (or the provider on behalf of him) enables to suppliers to enter e-auction room within appointed dates, ensures its working according to the rules of on-line competition and supervises correct e-auction process.

    In case of any questions or unexpected complications, all participants of e-auction have an option to communicate with the administrator through the phone or via chat which works in the e-auction room.

  6. Option to eliminate a participant

    In case if steps of any candidate of e-auction are in contradiction with enunciator’s requirements or these rules, the enunciator is allowed to eliminate him from e-auction. Within the competition round, the candidate can be eliminated in following events:

    • candidate repeatedly asks the administrator to make a change of price level of his offer
    • candidate didn’t present complete offer and it is such case when completeness of the offer is required
    • candidate didn’t fill in required optional conditions and he doesn’t respond to calls to do it
    • candidate changed quality of offered goods what has been declared
    • candidate repeatedly responds in a way which is in contradiction with administrator’s requirements said within chat or e-mail communication with that candidate or the others

    Enunciator or administrator has to demonstrably inform about breach of some above listed conditions before the candidate is eliminated. The provider highlights the fact if candidate with the best offer is eliminated, the system will recount all data and new best offer will be shown. In case eliminated candidate declares his interest to meet all administrator’s (enunciator’s) criterions after his elimination, the enunciator has an option to decide about his return back to the e-auction.

III. Suppliers

Supplier confirms by his participation in the on-line competition his declared interest to negotiate price and terms of contract to sell the subject of e-auction is serious.

  1. Login to the system

    Supplier logs in to e-auction through login name, password and an access key on the web page - link placed in e-invitation letter. These login details identify the user when entering e-auction room. Supplier is obligated to ensure to keep his login details private and avoid nobody other to be able to use them for participation in e-auction without authorization.

    e-Auction room access can be granted only with enunciator‘s permission. In case of suspicious or evidently incorrect login details or in case of unauthorized using, the supplier’s access can be denied. Option to deny the access is in hands of enunciator. The supplier may cancel login process at any time before start of competitive round of e-auction.

  2. Binding of the offer

    In case supplier received enunciator’s confirmation says his offer has been accepted, supplier is obligated to conclude the contract for subject of e-auction within defined time limit, for agreed commodity, according to selected items and valid for required contracted period (unless otherwise stated in advance under entered conditions of e-auction). Supplier is responsible for compliance not only with entered conditions but also with all optional conditions what his offer includes. The offer becomes binding while the competition round is over. Legal claims for goods guarantee remain unchanged.

IV. Providers, observers and other persons

Within process of preparation, realization and evaluation of on-line competition there may be participated except enunciator and suppliers (in case of competition oriented to sell – buyers) also other persons. It is usually provider, administrator or observer.

  1. Administrator

    Administrator is a specific person working on enunciator’s (provider’s) side who technically and communicatively secures and controls realization of on-line competition.

  2. Other persons

    If it is necessary other persons to be active within realization of on-line competition and their positions are not specified in the rules but may influence process of e-auction, enunciator and suppliers have to mutually discuss whole matter enough time in advance.

V. Competition round

Competition round is started according to the time schedule defined in e-invitation letter.

Every supplier is able to see except his offer also the lowest price submitted in the competition or updated ranking of all offers. Within competition round it is allowed only reduce the prices. Other optional conditions can be modified by supplier in accordance with a way defined by enunciator.

Duration of the competition round is defined in e-invitation letter. Enunciator on his own (or upon provider’s request) determines individual conditions for extension of competition round (how many minutes may be added) or what is the last moment (last minute) when the price has to changed (so that the extension to be accepted) and also minimum step of unit price reduction. Minimum step of unit price reduction is related to the last offer of supplier. Enunciator is able to determine also maximum step of unit price reduction – this step is related to the minimum offer of e-auction room. In case of unit price reduction not only all above mentioned conditions have to be followed but it has to be respected also the fact, it is impossible to do such price reduction that would mean reaching of the same price level as the current minimum offer has (it can be only one minimum offer in competition round).

Next, enunciator has right to decide about manual extension of e-auction.

If it has been used some procedure with a difference from above mentioned (e.g. it was given permission to change prices up made on the basis of telephone or chat communication – e.g. in case of detection of a mistake during setting of items or technical difficulties of some e-auction participant), duration of e-auction may be extended manually. All participants of e-auction have to be informed well about this decision by administrator.

VI. End of e-auction

On-line competition may be close:

  1. automatically
    1. a-auction ends while the defined time is over
  2. manually
    1. enunciator has no interest to continue with e-auction
    2. in case of external unauthorized interference within e-auction process

e-Auction is finished while competition round is over. At this moment input of new supplier’s offers or requirements for modification of existing offers are stopped. In case of manually end of e-auction the administrator must inform all participants about this fact in advance.

Time remaining until the end of competition round is signalized to all participants by limited time which will reach level of 0 sec. at the moment of end of competition round. All candidates may use the remaining time for modification own offers.

VII. Evaluation of e-auction

After the end of on-line competition enunciator makes an evaluation of all offers from participated suppliers. The final decision may have following form:

  1. Enunciator will select the most suitable offer and inform the supplier. At this moment the offer becomes the basis to make order or conclude contract. In case it is e-auction focused on more than one purchase item, the enunciator has right to make selection according to every single items separately and the selected offer becomes the basis for order as well. Due this fact, enunciator can choose more than only one supplier. Suppliers whose offer was not chosen will be informed by enunciator about the final decision.
  2. Enunciator cancelled e-auction – this way means the e-auction was closed without chosen supplier (enunciator will send a message including explanation of the cancellation).
  3. Enunciator will announce another round where will be participated chosen suppliers from previous round whose offers best meet entered conditions. Whole process of e-auction is repeated then.

Enunciator informs all suppliers about the result of e-auction. It is a feedback says if the supplier was / was not chosen for concluding of contract (or if he got / didn’t get to next round of on-line competition. This feedback has to be provided to all participated suppliers at the latest until 30 days after the end of competition round. Electronic form of this feedback is considered as sufficient.

VIII. Force and effect

These rules of on-line competition are valid and effective in full for all here mentioned participants since 1.1.2013.

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