---
title: "18. Dutch Auctions"
slug: "18-dutch-auctions"
updated: 2024-01-30T20:17:08Z
published: 2024-01-30T20:17:08Z
canonical: "wiki.cobblestonesoftware.com/18-dutch-auctions"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://wiki.cobblestonesoftware.com/llms.txt
> Use this file to discover all available pages before exploring further.

# 18. Dutch Auctions

### **Dutch Auctions**

**Solicitations: Product Service Codes**

Dutch auctions are a solicitation record that is conducted in a reverse bidding process. Whereas a normal bidding process has numerous vendors competing for the lowest (or most qualified) price that a company must purchase a service from, a Dutch auction sees a price set by the company, that gradually decreases over time until a vendor places a bid. At this point, the price-decrease process stops, and the company reviews the vendors bid, and accept or reject it.

**Setting up Dutch Auction Solicitation Types**

To make a Dutch Auction record, you will need to use a solicitation type that is configured to handle one. Out of the box, a solicitation type named Dutch Auction is present. Use that or create/modify your own type to operate as a Dutch auction.

Establishing a solicitation record type involves editing an existing type.

1. Navigate to **Manage/Setup** - **Record Types**.

![User Graphics Interface Descrption Side Menu Record types](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/image-1666640201967.png)

2. Locate the desired solicitation type. To ensure you are selecting a solicitation type, in the ForArea column, look for tblSolicitations.

![Background pattern Description automatically generated with medium confidence](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/18.-dutch-auctions-image-n6sn8wm5.png)

3. Click View for the desired line item.

4. Edit the **Is Dutch Auction** field. To make the type a Dutch auction, set the field to Yes.

![Graphical user interface, text, application Description automatically generated](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/18.-dutch-auctions-image-e2skpkj2.png)

Alternatively, create a new solicitation type as a Dutch Auction.

1. Navigate to **Manage/Setup** - **Record Types**.

![Graphic User Interface Side Menu Actions" Add Legal Hold option](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/image-1666640201967.png)

2. On the side menu, click **Add Record Type**.

![Graphic User Interface Side Menu Page Actions - Add Record Type](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/image-1666640242974.png)

3. The Add New Types screen displays. Enter a name for the new type.

![Graphical user interface, application Description automatically generated](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/18.-dutch-auctions-image-sfa41azn.png)

4. For the **ForArea** field, select Solicitation Details.

5. Mark the **Is Dutch Auction** tick box.

6. Click **Save & Continue**.

**Setting up Dutch Auction Fields**

1. Navigate to **Manage/Setup** - **Field Manager** - **Manage/Assign Fields by Record Type**.

2. Select **Solicitations** and the applicable type.

![Graphical user interface, text, application, email Description automatically generated](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/18.-dutch-auctions-image-6mqmog5r.png)

**Note:** If the type is new, the message appearing above - no fields assigned; this means all fields will show - displays. If, however, working with an existing type, fields may already be assigned.

3. Add the needed fields per the [Assign Fields by Contract Type](https://wiki.cobblestonesoftware.com/docs/assign-fields-by-contract-type) wiki entry.

**Creating a Solicitation/eSourcing Record for Dutch Auction**

1. Navigate to **eSourcing - Add Solicitation Record**.

**![Graphic User Interface Side Menu, Add Solicitations](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/image-1666640313296.png)**

2. The Add New Sourcing Record page displays. Select the applicable type designed as a Dutch auction.

![Graphical user interface, text, application Description automatically generated](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/18.-dutch-auctions-image-imol93qh.png)

3. Click **Continue**.

4. Add the eSourcing record as usual but paying special attention to the area specifically for Dutch Auction Setting field group. It contains four (4) important fields.

A. **Starting Price**: The starting price for your auction.

B. **Ending Price**: The lowest price your auction will go to.

C. **Price Decrease Amount**: The amount the price of the auction will decrement by.

D. **Price Decrease Interval**: The amount of time in minutes that will pass between price decreases.

5. You also **MUST** set a **Bid Open Date** and **Bid Close Date**

**![Graphic User Interface Description Dutch Auction Status](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/Dutch%20Auction%20Solicitation%20Record%20Example.PNG)**

**![User Graphics Interface Description, Place Bid option on Status](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/Dutch%20Auction%20Gateway%20Example.PNG)**

**![User Graphic Interface - Auction Status to place bid and Take Survey options](https://cdn.document360.io/e3626857-1fb5-4e27-b278-2d3fc5508be4/Images/Documentation/Dutch%20Auction%20Gateway%20Example%20with%20Attached%20Survey.PNG)**