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 ‘Construction’ Category
Happy 7th Annual Road Salt Reverse Auction
Chicago School District saves 47% on service contract for Parking Lot Paving and Maintenance
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.
eBridge Cements a 14.5% Savings for the City of Lakeland, FL
In their 6th event, The City of Lakeland, FL used eBridge’s reverse auction services to procure their annual supply of Portland Cement. The 3 participating supplier placed 23 bids, with 5 first place turnovers and 8 time extensions. The competitive event led to a true market value of 0.01%, and a 14.5% saving on their budgeted value. The City of Lakeland, FL was pleased with the results, and it will quickly go to award.
Western US Resort Town Utilizes Reverse Auction for Construction Project
In the town’s first event with BidBridge, 3 suppliers competed in an effort to earn the contract for a slurry seal road project.
The 3 suppliers placed 35 bids over the course of the 58 minute event. Contrast that with the paper process, in which the same 3 suppliers would have only placed a single bid each.
The result was 14 first place turnovers and 19% savings versus budget. Just as importantly, the first and second suppliers were separated by only 1.44% at the conclusion of the bid, ensuring the town that they had achieved true market value for this project.
Ohio Hospital Establishes Construction Contract through Reverse Auction Process
A large hospital system in Ohio partnered with BidBridge to establish a for a contract to renovate the Hospital’s surgical center. The 9 participating suppliers placed a total of 438 competitive bids resulting in 314 time extensions. The supplier competition and interest caused the bid to last for 6 hours, the longest in BidBridge’s history!
Even though there were only 2 first place turnovers during the course of the event, the first and second place suppliers were separated by only .15% and the lowest bid at the conclusion of the event demonstrated 7.14% savings versus budget. Additionally, the first through fourth place suppliers were only separated by .31%. Based on such close competition between the top 4 suppliers, the hospital can be assured that the pricing they received demonstrates true market value and the Hospital has the flexibility to award to multiple qualified suppliers.
Ohio County Utilizes Reverse Auction to Establish Construction Contract
In the county’s event with BidBridge, 5 suppliers competed on a project for improvements of a waterline between two major cities, totaling over 30 miles distance.
Over the course of the 1 hour 6 minute auction, the suppliers placed 168 total bids, generating 83 time extensions. After 54 first place turnovers, the first and second place suppliers were separated by only .26%. The result was 24.6% savings versus budget, but more importantly, certainty that the county arrived at true market value for the project.
This bid was another in a recent string of very successful construction related projects run via BidBridge’s reverse auction platform. A common thread in most of these bids has been the structure of each: an initial bid is conducted in which suppliers submit lump sum pricing and then suppliers electronically submit line item pricing to justify the lump sum cost.
Insurance Company Purchases Construction Materials through Reverse Auction Process
BidBridge partnered with this insurance company to purchase cable and wire to outfit a new office building. Six suppliers competed for a contract for cable and wire. Four of the six suppliers were sourced by BidBridge. A total of 72 bids were placed on seven line items. The 46 minute event, including 28 time extensions, resulted in a 50% savings versus budget.
The contract was awarded immediately, and thanks the competitive bidding environment and strategically sourced suppliers; the company already scheduled their next event with BidBridge.
Vail, CO Swaps Paper Bid for Reverse Auction, Saves 19 Percent Against Budget
PR Newswire
Posted: 07/21/2009 09:00:37 AM MDT
LOUISVILLE, Ky. July 21 /PRNewswire/ — For the first time ever this past May, the Town of Vail, CO traded in the one-time paper bid process it normally uses to acquire construction services. Instead, Vail decided to rely on a reverse auction e-procurement platform to obtain slurry seal road services for more competitive pricing and to save taxpayer dollars.
“Ultimately, Vail wanted to look at alternatives to the paper bid process,” said Chad Salli, P.E., Project Engineer for the Town of Vail. “With the emergence of more efficient technology and strategies that can help us get a fairer price for services, the decision was not a difficult one.”
To run the reverse auctions, Vail called upon Louisville-based BidBridge, an eProcurement services provider for the public and private sectors that has worked with more than 400 public agencies. BidBridge facilitates a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids on a project, replacing the public sector’s traditional process of a one price per supplier response.
On May 27, the electronic bid took place between three construction service suppliers and helped save the town 19 percent against budget. The auction process lasted 58 minutes, producing 14 first place turnovers and 35 total bids.
“Vail was able to achieve a 1.44 percent difference between first and second place bidders – a solid indicator that market value was achieved,” remarked BidBridge CEO Jim Headlee. “BidBridge’s visibility and reporting capabilities allowed Vail officials to monitor the entire process while empowering them with a simple means to record the auction for future reference.”
Chad Salli added, “BidBridge provides a service that is truly crucial to efficient spending for local governments. Especially in a time of such economic uncertainty, the public sector has to use every means available to make sure money is spent wisely.”
BidBridge provides adherence to crucial stimulus spending factors like promoting competition and transparency through audit trails. For more information on how BidBridge is helping local governments, please visit www.bidbridge.com.
About BidBridge
Founded in 2005, Louisville-based BidBridge provides e-procurement services to both the public and private sectors, including cities, towns, municipalities and the medical, educational and corporate sectors. Through its competitive sourcing and online procurement system, BidBridge assists its buyers in achieving true-market value for the goods and services needed for ongoing business operations. Significant cost reductions and procurement efficiencies have allowed BidBridge’s buyers to save millions of tax payer, corporate and investor dollars, ultimately producing a positive effect on compressed budgets.
For more information, please visit: www.BidBridge.com
To view article at The Denver Post, click here.