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.
Posts Tagged ‘online reverse auction’
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.”
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%.
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.
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.
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.
Reverse Auction Saves Local KY Water District over $300k on Annual Purchase of Water Treatment Chemicals
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.
CA University Will Sleep Better After Saving 12.5% on Their Dorm Room Furniture Through eBridge’s Reverse Auction Process
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%.
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 IN 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.
eBridge’s Reverse Auction Helps Department of Corrections Keep Price Increases Down on Their Fresh Meat Purchases
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 already gone to awarded.