March 19, 2013 • 4:07pm in Department of Corrections, eBridge, Event Summaries, Security, State Government, Supplies
The Department of Juvenile Justice for a Southern State recently ran their first reverse auction. The online event was run for clothing items and pricing came in 45% below budget. eBridge helped source additional suppliers to participate and this created true competition. Eight suppliers were approved by the purchasing director to participate. In the end, the incumbent supplier was the low bidder.
The purchasing director said, “I was skeptical about the effectiveness of reverse auctions, but we saw that they were effective for other state agencies and decided to give it a shot. Rebecca at eBridge did a fantastic job in helping us with the specifications, sourcing suppliers and training everyone on how to use the system. In the end, we saved 45% compared to the pricing we received the last time we ran a traditional sealed bid.”
September 7, 2012 • 11:12am in eBridge, Event Summaries, Janitorial Supplies, State Government
The Department of Corrections for a Southern State ran their 12th reverse auction bid with eBridge today. The event was a live online bid for bar soap and it was one of the most competitive bids ever run by eBridge. Four suppliers were pre-approved to participate in the bid. A good reverse auction is generally defined as one that has 10 or more first-place turnovers and a spread between 1st & 2nd place of less than 2%. The original clock started at 15 minutes and because the bidding doesn’t stop until no lowering bids are placed in the final three minutes, the event went for 115 minutes. In the end, there were an amazing 321 first place turnovers and a spread of just .10% between first and second place. This bid was last run in 2007 as a traditional sealed bid. Thanks to a successful reverse auction, the cost of soap actually decreased by 9.5% for the state and its taxpayers.
June 1, 2012 • 5:07pm in Change Management, eBridge, Event Summaries, Fuel, State Government
A State Department of Corrections in the Southeastern US partnered with eBridge to run an annual propane bid for 8 of their facilities. Fuel bids shouldn’t be run on a fixed price quote because of large weekly fluctuations in petroleum costs. The bid required the 5 suppliers to compete by lowering their mark-up to the weekly oil price index for liquid petroleum. The 48 minute reverse auction allowed 5 suppliers to aggressively compete, resulting in 76 first-place turnovers. There were twelve separate lots and the spread between 1st & 2nd place did not exceed .18% on any of the lots. Despite increases in delivery costs since the last time the bid was run, the agency will realize a 4% decrease in propane costs relative to the old contract.
May 8, 2012 • 5:44pm in Chemicals, eBridge, Event Summaries, State Government, Water Treatment Chemical
One of the largest water & sewer agencies in South Carolina teamed with eBridge to run their annual chemical bid. There were 19 chemicals included in the bid and twenty participating suppliers. Overall, the budget for chemicals annually is over $3 million and the agency realized savings on their largest spend categories. For instance, Aluminum Sulfate accounts for more than half the budget and the agency shaved $70,000 off their annual cost for that chemical. Fuel prices have been driving up chemical prices because delivery costs are increasing. This agency was able to take positive steps to control their costs.
April 27, 2012 • 2:55pm in City Government, County Government, eBridge, Event Summaries, State Government
eBridge has run many successful reverse auctions for several government agencies in Indiana and Kentucky. Achieving significant savings on their past 3 road salt bids, last week a KY Agency again partnered with eBridge for their 4th consecutive road salt reverse auction. During this 15 minute auction, 5 suppliers placed 84 bids resulting in 4 first-place turnovers. The spread between 1st and 2nd place was 0.13%. Also, this week an IN Government Agency partnered with eBridge on their 5th consecutive road salt reverse auction. 4 suppliers placed 65 bids resulting in 8 first-place turnovers during this 15 minute auction. The spread between 1st and 2nd place was 0.1%. Based on the spreads between 1st and 2nd place, both agencies can be assured they have achieved true market value, as well as, proving that road salt bids are perfect candidates for the reverse auction.
April 18, 2012 • 3:08pm in eBridge, Event Summaries, State Government
Due to rising fuel costs, the Buyer expected an increase in their quarterly purchase price. They partnered with eBridge to run the bid through the reverse auction process with a goal of keeping the increase to a minimum. The Buyer’s goal was reached and the bid was a success. eBridge sourced 28 suppliers and 8 were approved to participate. The 8 suppliers competed for an hour and 11 minutes, placing 231 bids which resulted in 151 first-place turnovers. Achieving true market value, the spread between 1st and 2nd place was 0.13%. The Buyer was very pleased with the bid results and the bid has already gone to awarded.
April 4, 2012 • 12:56pm in Chemicals, eBridge, Event Summaries, State Government, Water Treatment Chemical
eBridge ran a very successful auction for a local water & sewer agency in North Carolina. It was their first experience with reverse auction and they started with 5 chemicals: Potassium Permanganate, HFS, Acetic Acid, Ammonia and Sodium Hydroxide(caustic). The suppliers were asked to provide a fixed price for one year that included all fuel and delivery fees. All of the chemicals had multiple suppliers, with the exception of acetic acid, but the incumbent held the acetic acid pricing at the same level. In the other four categories, the 1st & 2nd place suppliers ended with bids within 1% of each other. There were some dramatic savings realized for potassium permanganate (37% decrease) and sodium hydroxide (52% decrease). The HFS and ammonia held steady on price, but the agency is guaranteed that price for the next year. eBridge fees are paid by the awarded supplier, so there was no direct cost to the agency to run this bid.
February 8, 2012 • 9:01am in eBridge, Event Summaries, Healthcare, State Government
A state health agency on the East Coast ran a very successful ID card printing bid using eBridge’s reverse auction technology. The agency had used a previous quote to establish a budget of $147,000 for the five year contract. Seven bidders were approved by the agency to compete for the business. At the end of the 25 minute online bidding event, a local vendor won the bid at $107,902. The second place bidder was only $9 behind and third place was less than $1,000 off the lead. This once again proves that an eBridge reverse auction delivers not just a great low price, but competitive alternatives.
December 7, 2011 • 2:19pm in eBridge, State Government
A State Procurement Office needed to procure a magazine printing contract, and partnered with eBridge for the 3rd consecutive year. There were 4 participating suppliers with 42 bids placed. After 37 first place turnovers, the spread between 1st and 2nd place ended at 1.36%, showing true market value. The Southern Organization saved 3% over last year’s price and is paying 35% less than they paid in 2008 – the last time the bid was run as a traditional sealed bid.
December 7, 2011 • 2:07pm in eBridge, State Government
A Southern State needed to procure their Lottery Promotional Products, and used eBridge’s reverse auction process. The State pre-qualified the suppliers by having them submit samples. There were six approved participating suppliers. At the end of the event, the taxpayers saved money because the final bid came in 30% below the budgeted amount.