Posts Tagged ‘true market value’

June 11, 2013 • 9:18am in eBridge, Event Summaries, Healthcare, Prison Systems 0

Reverse Auction Provides “Positive” Results on Bid for Drug Screening!

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.

June 10, 2013 • 4:04pm in Chemicals, Water Treatment Chemical 0

Reverse Auction For Water Agency Delivers Value

A water agency for a southern city ran its second reverse auction with eBridge and it produced some dramatic savings.  The bid was for sodium hypochlorite and phosphoric acid.  There were at least four bidders in each category and the online bidding was very active for forty minutes as vendors competed for the business.

When the event concluded, the agency calculated that they lowered their annual expenditure on sodium hypochlorite by $80,000 and phosphoric acid by $112,000 representing a savings of 35%.  The reverse auction technology is important.  However, at eBridge, we believe that the proprietary process that we’ve developed is what differentiates our service and enables the reverse auction to deliver maximum value.

The purchasing manager for the agency said, “eBridge brought a level of expertise to the table that minimizes public expenditures to the greatest extent possible. eBridge expands the database of qualified vendors which provides greater opportunities for offers. Prior to the bid event eBridge provides individual training to each vendor ensuring there is a complete understanding of what is required in order to submit responsible and responsive offers. eBridge also handles all the administrative duties normally assigned to the purchasing agent associated with the dissemination of bid documentation ensuring that consistency, transparency and integrity is achieved throughout the process. I would highly recommend using e-Bridge if the opportunity arose to enhance your organization’s ROI wherever possible.”

May 9, 2013 • 3:16pm in Chemicals, City Government, Construction, Event Summaries 0

Happy 7th Annual Road Salt Reverse Auction

 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 0

Louisville Agency Saves 53% on Elevator and Escalator Maintenance

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 25, 2013 • 3:41pm in City Government, Construction, School District 0

Chicago School District saves 47% on service contract for Parking Lot Paving and Maintenance

A large school district in Chicago’s northwest suburbs recently saved 47% off budget on a service contract for Parking Lot Paving and Maintenance.  The three-year contract will see a reduction in costs of $115,000 and the winning vendor was an incumbent.

eBridge’s Specification Development Team suggested a new approach to capturing the pricing.  The auction broke it down into measurable, responsible pieces by square and liner footage that helped minimizing inefficiencies.  This recommendation helped them to standardize their pricing for future projects,  provided exact measurements of their property (provided by vendors), and solidified their budget for the next 3 years.

April 1, 2013 • 1:14pm in Event Summaries, School District 0

Reverse Auction For Janitorial Services Cleans Up

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 0

Reverse Auction Is A Perfect Fit

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 0

Corrections Department Cleans Up On Soap

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.

April 27, 2012 • 2:55pm in City Government, County Government, eBridge, Event Summaries, State Government 0

eBridge’s Reverse Auction Produces Savings on Kentucky and Indiana Annual Road Salt Purchases

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.

March 1, 2012 • 11:54am in eBridge, Event Summaries, Furniture, Fixtures and Equipment, Hospitality 0

eBridge Equips Hotel Chain with a 15.6% Savings on Kitchen Equipment Bid

 For their 3rd event a large resort/hotel chain used reverse auction for the purchase of Kitchen Equipment. There were four participating suppliers competing extensively for the opportunity to win this event. There were 123 bids placed with 8 first place turnovers. At the close of the bid the spread between 1st and 2nd place was 0.10%, reflecting true market value. The hotel chain saved 15.6% off their budget, and was pleased with the results.