An Indiana county has partnered with eBridge to run reverse auctions for their annual road salt purchases for seven consecutive years. eBridge has continued to find market value for this IN County year-after-year and this year was no different. At this point, you could call us both experts when it comes to road salt. This year, 6 of the suppliers sourced by eBridge met the Buyer’s minimum requirements and were approved to participate in the bid. During the 45 minute auction, the 6 competing suppliers placed 187 lowering bids resulting in first place changing hands 68 times. If awarded to the low bidder, the buyer will save $5.77 per ton over last year’s price. We are happy to again report that a great partnership and the reverse auction continue to produce savings.
Archive for the ‘City Government’ Category
A large school district in Chicago’s northwest suburbs recently saved 47% off budget on a service contract for Parking Lot Paving and Maintenance. The three-year contract will see a reduction in costs of $115,000 and the winning vendor was an incumbent.
eBridge’s Specification Development Team suggested a new approach to capturing the pricing. The auction broke it down into measurable, responsible pieces by square and liner footage that helped minimizing inefficiencies. This recommendation helped them to standardize their pricing for future projects, provided exact measurements of their property (provided by vendors), and solidified their budget for the next 3 years.
We have found that chemical bids are a great fit for reverse auctions because they create a highly competitive environment for commodity purchases. Budgets are tight and if your agency is looking for strategies to control chemical costs, it could make sense to consider a reverse auction bidding strategy. Below is a summary of the most actively bid chemicals:
|South Carolina City (Population 120,000)|
|Chlorine||3 Suppliers||36% decrease from 2012 pricing|
|Lime||4 Suppliers||21% decrease from 2012 pricing|
|Phosphoric Acid||6 Suppliers||43% decrease from 2012 pricing|
|Sodium Hydroxide||6 Suppliers||14% decrease from 2012 pricing|
|California City (Population 209,000)|
|Granular Activated Carbon||3 suppliers||24% decrease from 2012 pricing|
|Kentucky City (Population 740, 000)|
|Sodium Hydroxide||4 Suppliers||11% decrease from 2012 pricing|
|Pennsylvania City (Population 300,000)|
|Calcium Hypochlorite||3 suppliers||14% decrease from 2012 pricing|
|Caustic Soda (25%)||4 Suppliers||42% decrease from 2012 pricing|
|Copper Sulfate||4 Suppliers||13% decrease from 2012 pricing|
Having consecutively run their last 5 chemical bids through eBridge’s reverse auction and achieving an estimated overall savings of $175,376, running the 6th consecutive chemical bid was a no-brainer for this KY Agency. This bid had 3 approved suppliers competing for the agency’s annual contract for Ferric Sulfate purchases. During the 36 minute bid, 56 bids were placed with 20 first-place turnovers. The expected savings is $36,000 or 15%. This shows with even just a few competitive suppliers, the reverse auction can still provide significant savings.
Reverse Auction Saves Local KY Water District over $300k on Annual Purchase of Water Treatment Chemicals
Since 2009, this local KY Agency has run 5 chemical bids through eBridge’s reverse auction process. Their latest running this week resulted in an estimated savings of $310,800 or 24%. 16 suppliers placed 592 bids (between 8 chemicals) resulting in 179 first-place turnovers. The lowest spread between 1st and 2nd place was 0.06%. Chemicals are just one of many purchases that continue to produce significant savings through the reverse auction process. With such a large supplier base, regardless of the chemical, eBridge always seems to get a great response for participation.
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.
After achieving significant savings for their chemical purchases through eBridge’s reverse auction process in 2011, this Albany, KY agency was ready to see what the reverse auction would bring in 2012. Initially a few of the chemicals had limited supplier participation but through additional sourcing efforts by eBridge, 8 suppliers placed 292 bids between the 7 chemicals. There were 118 first place turnovers during the hour and 12 minute bid. The high-low spread between 1st and 2nd place was .04% with a savings of $47,588 or 23%.
The City of Frankfort, KY partnered with eBridge to procure their odor control services. The two participating suppliers placed 87 bids. The 52 minute event had 36 time extensions, and 11 first place turnovers. On their 4th event with eBridge, the City of Frankfort, KY saved 15% off their budgeted value, with a true market value of 0.27%. They were pleased with the results of the bid.
The City of North Miami Beach, FL partnered with eBridge to acquire their Norwood WTP Lime Sludge Removal Services. There were 3 participating suppliers with 95 bids placed, creating a competitive bidding environment. The first place bid was reduced 20 times over the 40 minute bid. The bid reached true market value with a spread of 0.57% between the 1st and 2nd place suppliers! The City of North Miami Beach, FL saved 18% on their budgeted value.
The City of Versailles, KY ran their 2nd chemical bid through eBridge’s reverse auction system. The City of Versailles, KY needed 12 chemicals, for a 1 year contract. The hour and a half event was extremely competitive, with 16 participating suppliers and 461 bids placed. There were 95 first place turnovers, causing a high/low spread of 0.03% and reaching true market value. The City of Versailles were pleased with the results, and saved 9.3% on their budgeted value.