What are the different auction types? What do firms see during auctions?

For many matters, PERSUIT's optional Reverse Auction feature is the best way to find true and competitive market pricing.

When used, it has four visibility options to determine the level of comparison detail around pricing, including items and sub-items, that firms see:

1. Price ranking only
2. Price ranking and lowest bid
3. Price ranking and each competitor firm's current bid
4. Phase price ranking and lowest phase bid

Firms will see the chosen auction type in the request details section (view this article for more information). They will not see any of the ranking data from the options above until the moment the auction begins.

In the Timeline & Reverse Auction section of a request draft, you'll be able to select the best auction visibility type for your matter in the "Choose what the firms will during auction" drop down.. View this article for more information on how to create a request.

1) Price ranking only

Once the auction commences, firms are provided their "Price Ranking" overall. They will only be able to see their current position. They will be blind to their competition's pricing (pricing items and sub-items) and ranking.

2) Price ranking and lowest bid 

Participating firms will see their own current "Price Ranking" overall AND the bid of the anonymised lowest priced firm only, including its items and sub-items. The pricing assumptions are not displayed. It does not show any details about any of the other firms or their pricing bids, including items and sub-items.

3) Price ranking and each competitor firm's current bid

This visibility gives the most visibility to firms. They see their own "Price Ranking" overall as well as the anonymised fee amounts, bids placed (pricing items and their sub-items) and price rankings of every firm participating in the reverse auction. Other firms' assumptions are not displayed.

4) Phase price ranking and lowest bid per phase

Participating firms will be able to see their own "Price Ranking" at the phase level AND the lowest bid per phase by any competitor. The firm will not be able to see their own overall price rank. They will also not be able to see full details into pricing items and sub-items proposed by competing firms. This encourages strategic bidding and information while maintaining confidentiality of total proposal values.

You can find more information on what phase-based ranking looks like for firms in this article.

For all auction types:

• Firm names, individuals' names, proposal summaries, pricing assumptions, and answers to qualitative questions are always hidden from view.
• Firms can revise the phase level or activity level fees by clicking "view details" on their proposal and then clicking "revise proposal." Firms that make changes to their total price throughout the auction as a quick revision tool are encouraged to true up their phases prior to the auction's conclusion. If firms fail to make revisions at the phase level because they run out of time, the client can reopen the request for them after the auction for final revisions.
• Any change in ranking as a result of firms revising their pricing will be shown to all firms in real-time. 
• Time extensions - any revisions submitted by a firm in the last 5 minutes of the auction will reset the clock to 5 minutes to allow other firms to also make final changes. This will continue until there is a 5 minute period without further changes.

Please reach out to support@persuit.com with any questions.

Total Price and Comparison Value

An auction is run and ranked on the basis of either:

1. Total Price

is a figure that is defined by the client. Often this is defined as the sum of particular phases or a different calculation that gives the client a good benchmark to compare firms at a high level. This is helpful when the client wants to utilize a specific reference in assessing the proposals. Instructions and assumptions on how to calculate the Total Price are typically outlined in the pricing section. If pricing items are revised at the phase level, firms and vendors should ensure that those adjustments are reflected in the calculation for the Total Price. This is particularly important during an auction and should be completed before the auction ends.

2. Comparison Value

is a figure that is automatically calculated based on the sum of all the pricing items. The comparison value does not sum hourly rates, rate cards, or discount %s. This simplifies the high-level comparison figure to a simple sum across the items and does not need to be recalculated or updated by the firms or vendors. The advantage of this figure is to allow firms and vendors to focus on the individual pricings items that make up the new Comparison Value.