Category: Commodities
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 Indiana 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.
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 gone to award.
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%.
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.
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.
A State Education Lottery has successfully been using a reverse auction strategy to purchase its promotional items like pens, cups, and t-shirts with their logo. The first two auctions came in below budget, but the third bid delivered even more amazing results. Seven bidders were approved to compete after submitting samples to the agency. The catalog price for the items was over $150,000 and the State budgeted $129,000 for the purchase. After an hour of suppliers underbidding each other, the low bid came in at $50,000! Second place was $51,900 and all seven of the bidders were at least 25% below the budgeted amount.
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.
Greater Peoria Sanitary District, IL, ran their waste water treatment chemical bid through eBridge’s reverse auction process. The 5 participating suppliers had an extremely competitive bid, with 271 bids places and 195 extensions. During the 62 minute bid, 1st placed turned over 86 times, with a savings of 28%. Greater Peoria Sanitary District, IL, reached true market value with a 0.6% spread between 1st and 2nd place.
The City of Danville, KY, ran a competitive water and wastewater treatment chemicals contract, through eBridge’s reverse auction system. The 7 participating suppliers placed 261 bids, with 126 time extensions over the 1 hour and 17 minute event. The first place bid was lowered 81 times, creating a spread of .18% between 1st and 2nd place, showing true market value. The City of Danville, KY, saved 7.1% over their last years bid, and was pleased with the results.