eBridge News (Commodities)
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.
About eBridge
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.
Press Contact:
Whitney Headlee
Director of Sales and Marketing
whitney.headlee@ebridgeglobal.com
‘Tis the season to be merry! Even though summer is here, now is the time to be purchasing for the upcoming winter season.
eBridge recently ran an event for deicing chemicals for a state transportation department.
True market value is our the main goal in each auction that we do here at eBridge and it was achieved on this chemical bid with a margin of 0.29% between first and second place. There were several suppliers competing for the top spot and first place changed hands thirteen times.
It doesn’t have to be raining out to buy a rain jacket and it doesn’t have to be cold to buy deicing chemicals so remember eBridge year-round for all of your purchasing needs.
BidBridge assisted a Kentucky city with the purchase of 11 chemicals for water treatment. Chemicals are a volatile commodity, with pricing for each varying throughout the year.
Twelve suppliers participated in the bid, placing 373 total bids throughout the 2 hour, 20 minute bid. First place changed hands 111 times and the clock extended 215 times, allowing suppliers to continue to compete for the business.
At the conclusion of the bid, the city saved 23% versus budget.
A Midwestern state’s water district engaged BidBridge for the purchase of two water treatment chemicals. The bid was comprised of four line items, with pricing segmented out for a 6 month and 1 year contracts for each. The chemicals included ferric sulfate and hydrofluorosilicic acid.
Seven suppliers placed a total of 31 lowering bids over the course of the one hour, 58 minute event. The final overall pricing for the event yielded a 21% savings versus budget.
The buying organization was thrilled with the pricing and is slated to run several more events through BidBridge reverse auction process in the near future.
Logs Less than Two Percent Separation between First and Second Place Bids on All Line Items
DANVILLE, KY (December 9th, 2009) – In October, the City of Danville, KY set out to acquire new contracts on eight water and sewer treatment chemicals. City officials recognized the need to use innovative techniques in procurement to attain the pricing they were hoping to achieve. As a result, the city looked into leveraging an electronic reverse auction platform for the bid.
Earl Coffey, Chief Engineer for the City of Danville partnered with Louisville-based BidBridge, a proven e-auction services provider for the public and private sectors. While the public sector’s traditional one price per supplier response has lasted over the years, BidBridge offers an alternative for public organizations that recognize the need for better competition in the bid process. By using a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, the purchaser gains visibility and creates a more dynamic and competitive purchasing environment.
With BidBridge’s help, the city was able to attain the following line items with a mere two percent separation or less between first and second place suppliers:
– Hydrofluosilicic Acid
– Potassium Permanganate
– Liquid Alum
– Alum
– Mississippi Rotary Lime
– Powdered Activated Carbon
– Bulk Powder Activated Carbon
– Sodium Aluminate Solution
Fifty-five bids were placed for the bulk powder activated carbon line item, resulting in 29 first place turnovers and 89 time extensions. The event lasted two hours and three minutes.
While all of the elements produced heavy competition, the most competitive element was bulk powder activated carbon. With only .10 percent separation between first and second place suppliers, the City of Danville was able to attain true market value for its purchase.
“The City of Danville represents yet another example of the public sector’s renewed focus on efficiency through cutting-edge technologies and strategies,” said BidBridge CEO Jim Headlee.
BidBridge also hosted another Danville bid event for a rescue pumper fire apparatus on November 24.
In Northern Kentucky Water District’s first event with BidBridge, eight suppliers competed for the purchase of the following three chemicals:
copper sulfate
potassium permanganate
sodium hypochlorite
The suppliers had the opportunity to place bids for each chemical on a 6 month and one year contract. Due to the fluid price of chemicals, the flexibility of the BidBridge platform allowed the buyer to receive pricing from suppliers on separate line items.
The bid lasted one hour, four minutes. The most competitive line item was the sodium hypochlorite on a 6 month contract. 110 bids were placed for the chemical, yielding 35 first-place-turn-overs, with on .047% separating first and second place.
The buyer was pleased with the event and is already looking to run additional chemicals with BidBridge.
The Washington, DC metro area sanitation commission engaged BidBridge’ reverse auction expertise for the purchase of 15 chemicals to treat water and wastewater in the Washington DC metro area. 15 suppliers competed on a variety of chemicals.
Some of them chemicals bid are as follows:
Aluminum sulfate
Caustic soda
Chlorine
Ferric chloride
Hydrofluosilcic acid
Phosphoric acid
Potassium permanganate
Powder activated carbon
Sodium bisulfate
Sodium hypochlorite
Sulfur dioxide
Sulfuric acid
The bid lasted three hours, 22 minutes, with one chemical producing over 180 bids, causing the event to continue for several hours. However, the competition among suppliers led to 97 first place turnovers and only 0.46% between the first and second place finishers, indicating true market value had been achieved.
As any buyer knows, achieving true market value is crucial in the purchase of chemicals because of the volatility of the market.
A Kentucky city engaged BidBridge for the purchase of eight chemicals, 7 being used to treat the city’s drinking water and one for sewer treatment.
The eight line items included:
Hydrofluosilicic Acid (price per drum)
Potassium Permanganate (price per drum)
Liquid Alum (price per dry ton)
Alum (per 50 lb bag)
Mississippi Rotary Lime (price per 50 lb bag)
Powdered Activated Carbon (price per 50 lb bag)
Bulk Powder Activated Carbon (price per pound)
Sodium Aluminates Solution (price per pound)
A total of seven suppliers competed in the event, with participation ranging from three to five suppliers on each element. The most competitive element was the bulk powder activated carbon. A total of 55 bids were placed, resulting in 29 first place turnovers and 89 time extensions. At the conclusion of the two hour, three minute event, first and second place were separated by only .10%, indicating true market value was achieved.
Nearly every line item on the event produced less than 2% between first and second place. At the conclusion, the buyer felt confident she received true market value for the chemicals the city intended to purchase.
City Obtains Liquid Ferric Sulfate, Aluminum Chloride at Market Value, Posting .28 and .31 Percent Spreads Respectively between First and Second Place
FORT SMITH, Ark., Aug. 18- In light of a highly volatile chemical market, the city of Fort Smith, AR decided to partner with Louisville-based BidBridge this July to host a reverse auction for acquiring water treatment chemicals. The city chose to work with BidBridge because its bidding process promotes close competition, leaving the city feeling confident that they achieved true market value for their purchases.
In the end, Fort Smith was able to obtain a number of chemicals including liquid ferric sulfate and aluminum chloride at market value, posting .28 and .31 percent differences respectively between first and second place.
BidBridge facilitates a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, providing an alternative to the public sector’s traditional process of a one price per supplier response. The July 22 bid saw nineteen suppliers competing to supply 14 different chemicals for the city.
“Our partnership with BidBridge was a success, right from the start. They were exceptional in assisting us with this bid and enabled us to tap into a vendor market that was not available to us in the past,” said Alie Bahsoon, Purchasing Manager for the City of Fort Smith. “Not only did we realize the benefits of true market value with this bid but it also enabled us to have a team of experts on our side that assured success, from beginning to end, and at no cost to the city.”
By the time the 49-minute bid was finished, the bid had logged 122 times extensions. The most competitive line items, liquid ferric sulfate and aluminum chloride, logged 107 bids with 16 first place turnovers and 16 bids with 6 first place turnovers, respectively.
“The BidBridge platform was created for robust, dynamic electronic procurement, fostering competition in an environment based on the most efficient technology available,” remarked BidBridge CEO Jim Headlee. “Our team is there for cities like Fort Smith to help make the process as seamless and painless as possible.”