This white paper analyzes procurement data from the Federal government over 5 years to show how reverse auctions have helped government agencies meet diversity goals while saving money. It finds that reverse auctions create a level playing field that allows small and diverse businesses to compete effectively for contracts. As a result, federal agencies using the reverse auction platform FedBid significantly increased the number and dollar value of contracts awarded to small, women-owned, minority-owned and veteran-owned businesses between 2008-2012 while still obtaining best value for taxpayers.