Yankee Auction

A Yankee auction is used for multi-lot or multi-quantity sourcing, where suppliers bid on how much of the total quantity they can fulfil and at what price — the award can split across several winning suppliers rather than going to one.

This format suits buys where no single supplier can (or should) fulfil the entire quantity — spreading the award reduces single-supplier dependency while still using competitive bidding to set price.

Bidders specify both a price and the quantity they want. The seller, or buyer in a procurement context, allocates the lots across bids, typically starting from the best price until the quantity is filled.

Yankee auctions suit situations with several identical units or lots, where splitting an award across more than one party is acceptable.