After partnering with eBridge for the 8th time, a Florida City finds even more savings using reverse auctions. Having had other successful projects (fertilizer & cement), the city once again turned to eBridge to find a supplier for its flooring project. In a quick auction of only 31 minutes the city was able to save 7% on the flooring project. The auction had 29 bids from 5 participating suppliers.
In the town’s first event with eBridge, 3 suppliers competed in an effort to earn the contract for a slurry seal road project.
The 3 suppliers placed 35 bids over the course of the 58 minute event. Contrast that with the paper process, in which the same 3 suppliers would have only placed a single bid each.
The result was 14 first place turnovers and 19% savings versus budget. Just as importantly, the first and second suppliers were separated by only 1.44% at the conclusion of the bid, ensuring the town that they had achieved true market value for this project.
A large hospital system in Ohio partnered with eBridge to establish a for a contract to renovate the Hospital’s surgical center. The 9 participating suppliers placed a total of 438 competitive bids resulting in 314 time extensions. The supplier competition and interest caused the bid to last for 6 hours, the longest in eBridge’s history!
Even though there were only 2 first place turnovers during the course of the event, the first and second place suppliers were separated by only .15% and the lowest bid at the conclusion of the event demonstrated 7.14% savings versus budget. Additionally, the first through fourth place suppliers were only separated by .31%. Based on such close competition between the top 4 suppliers, the hospital can be assured that the pricing they received demonstrates true market value and the Hospital has the flexibility to award to multiple qualified suppliers.
LOUISVILLE, Ky. July 21 /PRNewswire/ — For the first time ever this past May, the Town of Vail, CO traded in the one-time paper bid process it normally uses to acquire construction services. Instead, Vail decided to rely on a reverse auction e-procurement platform to obtain slurry seal road services for more competitive pricing and to save taxpayer dollars.
“Ultimately, Vail wanted to look at alternatives to the paper bid process,” said Chad Salli, P.E., Project Engineer for the Town of Vail. “With the emergence of more efficient technology and strategies that can help us get a fairer price for services, the decision was not a difficult one.”
To run the reverse auctions, Vail called upon Louisville-based BidBridge, an eProcurement services provider for the public and private sectors that has worked with more than 400 public agencies. BidBridge facilitates a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids on a project, replacing the public sector’s traditional process of a one price per supplier response.
On May 27, the electronic bid took place between three construction service suppliers and helped save the town 19 percent against budget. The auction process lasted 58 minutes, producing 14 first place turnovers and 35 total bids.
“Vail was able to achieve a 1.44 percent difference between first and second place bidders – a solid indicator that market value was achieved,” remarked BidBridge CEO Jim Headlee. “BidBridge’s visibility and reporting capabilities allowed Vail officials to monitor the entire process while empowering them with a simple means to record the auction for future reference.”
Chad Salli added, “BidBridge provides a service that is truly crucial to efficient spending for local governments. Especially in a time of such economic uncertainty, the public sector has to use every means available to make sure money is spent wisely.”
BidBridge provides adherence to crucial stimulus spending factors like promoting competition and transparency through audit trails. For more information on how BidBridge is helping local governments, please visit www.bidbridge.com.
Founded in 2002, Louisville-based BidBridge provides e-procurement services to both the public and private sectors, including cities, towns, municipalities and the medical, educational and corporate sectors. Through its competitive sourcing and online procurement system, BidBridge assists its buyers in achieving true-market value for the goods and services needed for ongoing business operations. Significant cost reductions and procurement efficiencies have allowed BidBridge’s buyers to save millions of tax payer, corporate and investor dollars, ultimately producing a positive effect on compressed budgets.