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.
May 9, 2013 • 3:16pm in Chemicals, City Government, Construction, Event Summaries
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.
May 9, 2013 • 10:27am in Event Summaries, Professional Services
In a service auction for elevator and escalator maintenance for the Public Works department, eBridge’s customer received 53% savings. Our client’s cumulative savings will be over $400,000 for this contract. It was an exciting bid to watch. Five local suppliers placed a total of 604 lowering bids. First place changed hands 169 times and the spread between 1st & 2nd was 0.14%. The auction captured pricing on rates such as repair per hour, overtime, holidays, and material markups. The buyer chose not to award to the lowest supplier but awarded to the supplier they believed provided the best overall value.
April 1, 2013 • 1:14pm in Event Summaries, School District
A 12,000 student technical college in Arkansas ran its first reverse auction with eBridge this week. The reverse auction was part of a comprehensive RFP that will base the contract award on multiple quality factors, so it’s not just about getting the low price. eBridge worked with the college to develop specifications and source vendors to participate. In the end, a dozen vendors were approved by the college to participate in the online bidding, including four minority-owned businesses certified through the Arkansas Economic Development Commission. Four vendors came in with pricing below the current rates, and the two lowest priced vendors submitted pricing that would save the college 30% annually on their cleaning fees.
The Director of Procurement for the college said, “We were very pleased with the savings produced by the eBridge reverse auction. I was even more impressed with the value added by Peter and Jerry at eBridge and the veracity of the auction process. They really helped put together a high quality RFP and brought reputable vendors to the table. We’re looking at savings in excess of $100k annually because of this one bid and we can’t wait to use this process again.”
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.
August 13, 2012 • 11:06am in Event Summaries, Healthcare, Hospital, Services
eBridge ran another elevator maintenance bid yesterday. This time, a client in North Carolina with 142 elevator units was looking to consolidate to one service provider and significantly upgrade their level of service. The prospective suppliers submitted detailed proposals and toured the site prior to the online reverse auction. Four of the prospective suppliers were approved, by the buyer, to participate in the bidding event. All of the suppliers lowered their bids during the event with the two incumbent suppliers really battled for the business. After an hour of bidding, 1st and 2nd place were only separated by $500 or .08% of the total value of the contract. This bid was a fantastic example of the competition and value that a well-run reverse auction can generate for service contract bids. As a private entity, the buyer is not obligated to award to the low bidder. In this instance, the buyer knows they are getting a great price from either of the top two bidders and can base their decision completely on the quality of service provided.
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.