A State Department of Corrections in the Southeastern US partnered with eBridge to run an annual propane bid for 8 of their facilities.Â Fuel bids shouldnâ€™t be run on a fixed price quote because of large weekly fluctuations in petroleum costs. Â The bid required the 5 suppliers to compete by lowering their mark-up to the weekly oil price index for liquid petroleum. Â The 48 minute reverse auction allowed 5 suppliers to aggressively compete, resulting in 76 first-place turnovers.Â There were twelve separate lots and the spread between 1st & 2nd place did not exceed .18% on any of the lots. Â 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 • 5:07pm in Change Management, eBridge, Event Summaries, Fuel, State Government 0