Category: Raw materials
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.”