June 11, 2013 • 9:18am in eBridge, Event Summaries, Healthcare, Prison Systems
A corrections management company recently partnered with eBridge to run their first reverse auction. This company approached eBridge to assist in obtaining competitive pricing on drug screening for a large number of correctional facilities throughout the US. The tests needed to meet the requirements of each facility for drug screening of employees and inmates (instant and lab). Due to different laws from state to state regarding drug screening of inmates, it was a little challenging deciding all the different tests and testing methods that would be bid through the reverse auction. Welcoming the challenge, eBridge assisted in each step of the bid process starting with spec research and development to monitoring the live auction.
7 of the 50 originally sourced suppliers met buyer requirements and were approved to participate in the live bid. When the auction ended, 947 lowering bids had been placed resulting in 29 time extensions! First place changed hands 124 times and the spread between 1st &2nd place suppliers was 0.08%. The end result was a happy buyer and a low bid that will provide a 17% savings against current pricing.
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.
July 18, 2012 • 2:40pm in eBridge, Event Summaries, Healthcare, Higher Education, Hospital, Services, University
A large private university and affiliated hospital recently ran a reverse auction bid for their records management service. The bid was a five year contract and involved three pre-screened and approved vendors. After an hour and thirteen minutes of bidding, that showed 1st place turn over 27 times and a less than 1% spread between first and second place, the institutions had pricing that was 32% below their current rate. Over five years, that totals $914,880 in savings by utilizing reverse auction technology.
The Director of Strategic Sourcing for the hospital said, “eBridge is truly helping us to change the way we source for products and services. Whereas a sealed bid process can result in cost reductions, eBridge is able to help us to create true competitive marketplace where qualified suppliers can submit bids real-time. We continue to see tremendous value in this approach to sourcing.”
July 18, 2012 • 12:13pm in County Government, eBridge, Event Summaries, School District
A school in South Carolina recently ran a very competitive bid for its annual waste hauling contract through eBridge. Four vendors were approved to bid by the school. All of the vendors lowered their bids during the live online event. In the end, the incumbent was awarded the contract and the school realized a cost decrease of 6%.
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.
June 1, 2012 • 5:05pm in Chemicals, City Government, eBridge, Event Summaries
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.
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 • 3:21pm in Chemicals, City Government, eBridge, Event Summaries, Water Treatment Chemical
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.
April 27, 2012 • 2:59pm in Change Management, eBridge, Event Summaries, Furniture, Fixtures and Equipment, Higher Education, University
After learning of the great success several other local universities were having with reverse auction bidding, this CA University decided it was their turn! They partnered with eBridge to run a reverse auction for their purchase of dorm room furniture. For the live competitive auction, suppliers were required to bid a lump sum total for the entire scope of service (included: purchase of furniture, delivery and handling, installation as well as removal and relocation of existing furniture). Immediately following the live auction, suppliers had 3 hours to electronically submit their unit pricing, giving a complete breakdown of the final lump sum bid placed during the live auction. During the 25 minute auction, 4 suppliers placed 41 bids resulting in 5 first-place turnovers. The spread between 1st and 2nd place was 0.32% with an estimated savings of $19,800 or 12.5%.