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.
In their 6th event, The City of Lakeland, FL used eBridge’s reverse auction services to procure their annual supply of Portland Cement. The 3 participating supplier placed 23 bids, with 5 first place turnovers and 8 time extensions. The competitive event led to a true market value of 0.01%, and a 14.5% saving on their budgeted value. The City of Lakeland, FL was pleased with the results, and it will quickly go to award.
A Southern Indiana Company partnered with eBridge for the 3rd time, to procure their Flat IDC Wire Cables. There were 3 participating suppliers in this event, which lasted for 28 minutes. Forty-two bids were placed, with a spread of 7.53% between 1st and 2nd place. The Southern Indiana Company saved 15.6% on their budgeted value, and was pleased with the process.
Carroll County, Maryland, participated in their 3rd event with eBridge’s reverse auction technology, to purchase rock salt. There were 5 participating suppliers with 49 overall bids. 1st place changed hands 9 times, with 10 time extensions. The high-low spread was a mere 0.19%, reaching a true market value.
A prominent south Florida city partnered with eBridge to purchase steel containers and roll off boxes. These items are used in waste management.
Four suppliers participated in the event, placing a total of 526 bids on the 26 different line items. The clock extended 110 times, allowing suppliers to continue to compete for business. First place changed hands 114 times, making the event outcome uncertain until the very last second.
Final pricing indicated a savings of 29%. It should be noted that the savings is based on a 2008 budget number for this bid- two years ago.
Saves 5% off budget price on six new vehicles in preparation for 2010 school year
A school district needed to purchase a variety of vehicles prior to the start of the 2010-2011 school year. With tighter operating budgets, the school was looking for ways to save on cost, but not cut safety or necessity when providing a quality education and supporting programs to its students.
The school district sought to purchase six different vehicles, including maintenance trucks and driver’s education vehicles. They enlisted the expertise of eBridge, to provide purchasing consulting and the reverse auction platform.
Six car dealerships participated in the event, placing a total of 38 bids on the six vehicles included on the reverse auction. The clock extended 32 times indicating that the dealerships were excited to win the business for the new vehicles and that the school district was closer to achieving true market value for the purchase.
At the conclusion of the event, the price was five percent lower than their budgeted value and the school district was able to purchase all six vehicles and still meet budget.
As our economic future remains uncertain, it is important to maintain quality education for our young citizens. By incorporating purchasing efficiencies in to our routine purchases in education facilities, like the reverse auction, maintaining quality education becomes a reality.
Columbia, SC, August 3, 2010–With reports of budget crises in nearly every state, the state government of South Carolina is taking action by incorporating cutting edge technology and industry best practices to increase efficiencies in its purchasing process. One major addition to its purchasing techniques is the reverse auction.
A reverse auction is a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, rather than the one price per supplier response traditionally used in the paper bid process.
In July 2009, the State of South Carolina engaged eBridge Business Solutions, a proven eProcurement services provider, through a state contract. Since the inception of the contract, the State has utilized the reverse auction process for purchases budgeted at $5,344,000, resulting in over $1 million or 20.8% savings versus budget.
This savings was achieved over the course of 11 events between the Department of Transportation (DOT) and Information Technology Management Office (ITMO) on behalf of the Department of Motor Vehicles (DMV), Coastal Carolina University, Trident Tech, Midlands Tech, and Department of Natural Resources. A total of seven state organizations have utilized the reverse auction process.
“The State of South Carolina serves as a model for other states by incorporating best practices in purchasing through the reverse auction process”, said Jim Headlee, CEO of eBridge, “We commend State leadership for leveraging technology to be responsible stewards of tax payer dollars.”
The State is scheduled to run several more items this year as well as other city and local government organizations.
Founded in 2002, Louisville-based eBridge provides fully managed business solutions creating efficiencies and streamlining business operations. Leveraging years of experience in purchasing, sourcing and budget management, eBridge Business Solutions’ full suite of services includes purchasing, merchant card management, web based payroll and corporate purchasing cards. For more information, visit: www.ebridgeglobal.com.
Director of Sales and Marketing
Yet another successful auction runs with eBridge! Tommy Edge, our Georgia representative, was present for the pine straw mulch bid where eBridge brought six suppliers to the table. There were fifty-eight bids placed and ten time extensions. Over the course of the bid, first place changed hands ten times with an end result of over 34% under the purchaser’s budget.
Our number one goal it to give our clients the edge in the market and we do that by helping them achieve true market value. In this mulch bid we reached that goal with a 1.4% difference between the first and second place bidders. As your partner, we want to achieve this for your business purchasing needs so give us a call!
After a year when road salt prices were significantly higher than normal, prices appear to be declining for 2010.
BidBridge hosted our first road salt bid of the 2010 season for a large Midwestern county.
Six suppliers from across the country bid on the contract. Throughout the course of the competitive bidding event, first place changed hands 19 times, resulting in a total of 98 bids placed among the six suppliers.
The bid concluded at 7.99% lower than 2009 purchase price, providing savings versus last year’s budget for the county and providing a key indicator that prices may be dropping for the 2010 salt purchasing season.
Saves 28% versus budget on two year contract
A large city in Florida partnered with BidBridge to engage in a contract for the purchase traffic signs to outfit the city for the next two years.
Ten suppliers participated in the bid, placing 164 total lowering bids over the course of the 30 minute bid. First place changed hands 34 times. At the conclusion of the bid first and second place suppliers were a mere 0.26%, indicating true market value had been achieved for the purchase.
DAPHNE, Ala. — The city of Daphne recently saved around $61,000 by modifying its traditional project bidding process to an electronic bidding platform, using BidBridge, which allows for reverse auctions and claims true-market values.
The city budgeted $235,000 for the purchase of new trash bins, according to the city’s senior accountant, Suzanne Henson; the awarded bid came in at $174,000.
The reverse auction process allows suppliers to place multiple competitive bids, a change from the traditional “one price per vendor” scenario.
“Using the reverse auction, we were able to get more participation from bidders,” Henson said.
“The cornerstone of our business is competition,” BidBridge operations manager Guy Ramsey said.
Using the reverse auction, sellers compete against each other in a virtual bidding landscape; the process is timed and all bids are sealed.
Ramsey said BidBridge’s process allows for transparency during the bidding process, an attractive feature for a city in the process of formulating next year’s budget.
Henson expects the city to continue using the reverse auction for future project bids.
She added that the city council has the authority to reject a bid if it feels the offer’s not in the city’s best interests.
Founded in 2005, the Louisville, Ky.-based company provides an online procurement system used to secure public and private bids.
In the county’s first event with BidBridge, six suppliers competed for the installation of an early warning system for the County.
Suppliers submitted pricing for 5 elements, including 15 2-way electronic digital sirens, 2-part control packages for two control point locations, 15 concrete pole packages, 15 steel pole packages and 15 wood pole packages. In addition to the hardware, the pole packages included delivery and installation.
The most competitive element of the early warning system proved to be 2-part control packages for the two control point locations. The six suppliers placed a total of 53 bids, resulting in 13 first place turn-overs and 37 time extensions. First and second place were separated by only 0.28%, indicating that true market value had been achieved.
Overall, the county enjoyed a 27% savings versus budget on the entire early warning system package.
BidBridge partnered with this insurance company to purchase cable and wire to outfit a new office building. Six suppliers competed for a contract for cable and wire. Four of the six suppliers were sourced by BidBridge. A total of 72 bids were placed on seven line items. The 46 minute event, including 28 time extensions, resulted in a 50% savings versus budget.
The contract was awarded immediately, and thanks the competitive bidding environment and strategically sourced suppliers; the company already scheduled their next event with BidBridge.