FRAMINGHAM (03/10/2000) - American Management Systems Inc. (AMS) and business-to-business online auctioneer FreeMarkets Inc. have formed an alliance to encourage state and federal government agencies to purchase goods via reverse auctions over the Internet.
AMS, a Fairfax, Va.-based supplier of government procurement and financial management systems has begun offering the capability as part of its electronic-commerce management systems.
The purchasing market for federal agencies is about $200 billion, and it's conceivable that about half of those acquisitions could go through online auctions, said Larry Seidel, vice president of the management systems and technology group at AMS. The total public sector purchasing market is estimated at more than $500 billion.
Under the AMS/FreeMarkets online auction system, a federal or state agency will offer specifications for certain products and pre-qualified businesses will bid on them. Pennsylvania state officials are already using the Pittsburgh-based FreeMarkets to purchase goods.