The scope of this paper is to discuss the use of Internet Technology in the process of procurement currently employed by the Brazilian Federal Government. The focus of this analysis is on the Internet-Based Reverse Auction system employed by the Federal Administration to purchase goods and services from the standpoint of efficiency, efficacy and accountability. An explanatory single case study methodology addressing web-based purchase of pharmaceutical products by the Ministry of Social Security is used to answer the research questions raised in this paper. Technical, human and structural obstacles, as well as legal constraints that must be overcome, are also addressed. Conclusions detailing some findings and the advantages and disadvantages of this new modus operandi are also presented in this work.