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 &2^nd 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.

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.”

Reverse Auction Delivers Chemical Savings Again

A large water and sewer agency in South Carolina recently ran its second annual chemical bid with eBridge and once again lowered its chemical costs.  These results were consistent with other water agencies that have run multiple events with eBridge.

There are several reasons why eBridge can deliver savings in successive years on the same commodity.  First, we are constantly sourcing to bring additional qualified suppliers to our bids.  Second, the suppliers are coming into the bids prepared to lower their prices and compete for the business.  Third, we are constantly working to become better at the process of running an effective reverse auction and the results prove that we handle the details exceptionally well.

A well run reverse auction creates real time free market competition that delivers the best market price for a buyer.  There are many steps to running a great reverse auction and eBridge has the expertise and experience to deliver value for our clients.

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 Indiana 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.

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 1^st & 2^nd 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.

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.

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 the operations team 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.”

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.”

Four water agencies ran their first reverse auction chemical bids through eBridge in November

We have found that chemical bids are a great fit for reverse auctions because they create a highly competitive environment for commodity purchases. Budgets are tight and if your agency is looking for strategies to control chemical costs, it could make sense to consider a reverse auction bidding strategy. Below is a summary of the most actively bid chemicals:

Corrections Department Cleans Up On Soap

The Department of Corrections for a Southern State ran their 12^th 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 1^st & 2^nd 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.