Electronic Commerce

Third Party Procurement

Frequently Asked Questions

Q = Question; A = Answer

Q. What is the Federal Transit Administration's (FTA's) guidance on electronic commerce?

A. FTA Circular 4220.1F authorizes grantees to use a well-structured Electronic Commerce system to conduct third party procurements.  The circular defines electronic commerce as “electronic techniques for accomplishing business transactions including electronic mail or messaging, world wide web internet technology, electronic bulletin boards, purchase cards, electronic funds transfer, electronic signatures, and electronic data interchange.”  See FTA Circular 4220.1F, page III-5. (Revised: August 12, 2009) 

Q.  Have any Transit authorities used Reverse Auctions?

A.  Southeastern Pennsylvania Transportation Authority 215-580-8251. Los Angeles County Metropolitan Transportation Authority 213-922-7210. (Revised: August 12, 2009)

Note: The Best Practices Procurement Manual (BPPM) published a section on E-Commerce - Reverse Auctions in June 2003.