BidBridge Procurement Strategies Blog

The City of Portland partnered with BidBridge for the purchase of 400 fuel operated coolant heaters, with specifications for 200, 300 GPH capacity and 200, 120 GPH capacity.

BidBridge sourced 35 suppliers for the bid, with six suppliers approved by the buyer to participate.  The 56 minute bidding event yielded 98 bids, 18 first place turn overs and 47 time extensions. 

The competitive bid environment yielded 1.15% between first and second place suppliers, indicating true market value had been achieved for the City of Portland’s purchase.  The overall savings versus budget was 29.17%, presenting a compelling case for the City of Portland to award the bid.

Stephen Lewis Brings More than 17 Years of Business Management and Development to Louisville eAuction Service Team

LOUISVILLE, KY- February 2nd, 2010 – BidBridge, an eAuction services provider for the public and private sectors, today announced the addition of a new Vice President of Sales. Stephen Lewis is an experienced Fortune 500 Senior Sales Manager who will bring more than 17 years of business management and development experience to the BidBridge sales team.

Lewis joins BidBridge in a leadership, management and coordination role for the sales team. Prior to joining BidBridge, Lewis was the Senior Zone Sales Manager at Paychex, Inc., where he led and supported the efforts of a regional sales division of skilled sales professionals and support staff. He holds a B.A. in Organizational Management from Ashford University and completed the Executive Scholars Program in Marketing & Sales at Northwestern’s Kellogg School of Management.

“Stephen’s extensive experience, strong work ethic and professional attitude make him an integral addition to our sales team,” said BidBridge CEO Jim Headlee.

“As a leader in the eAuction services industry, BidBridge was the logical next step for me and a great professional opportunity,” said Lewis. “Representing a cutting-edge technology and forward-thinking procurement strategy, the company has a lot of potential for expansive growth in 2010.”

About BidBridge
Founded in 2002, Louisville-based BidBridge provides fully managed e-auction services to both the public and private sectors. Through its competitive sourcing and online procurement system and services, 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 taxpayer, corporate and investor dollars, ultimately producing a positive effect on compressed budgets.
For more information, please visit: www.bidbridge.com.

Auto Owners Insurance Company partnered with BidBridge for the purchase of steel case furniture through its dynamic eAuction platform.  

This was the second eAuction Auto Owners had utilized BidBridge on for steel case furniture and the seventh eAuction BidBridge has partnered with Auto-Owners on overall. 

Due to the unique nature of the furniture, two steel case suppliers competed in the reverse auction process, logging 56 bids and 25 time extensions, demonstrating the competitive nature of the dynamic bidding environment.

First place changed hands 19 times, with the two suppliers concluding their bidding with a  0.01% spread between first and second place, indicating true market value was achieved.

Auto-Owners achieved a 23% savings versus budget for this purchase.

By Anna Fifield in Washington

Published: December 22 2009 02:00 | Last updated: December 22 2009 02:00

The Obama administration will use an “Ebay in reverse” system as part of its efforts to cut $40bn in contracting costs from the federal budget each year.

Officials said yesterday they had already found $19bn (€13.3bn, £11.8bn) in savings for the current fiscal year.

The strategy, which would also see federal agencies banding together to buy the likes of stationery and software, was part of President Barack Obama’s directive to end unnecessary contracts and improving acquisition management, the White House said.

“We are here today for a simple reason: at a time when we face not only a fiscal crisis, but also a host of difficult challenges as a nation, business as usual in Washington just won’t do,” Mr Obama said after the White House’s Office of Budget and Management announced its plans for cutting waste.

“After years of irresponsibility, we are once again taking responsibility for every dollar we spend, the same way families do,” the president said.

US government spending on contracts more than doubled between 2002 and 2008, with contract spending reaching $540bn last year. Notably, the value of “high risk” contracts, awarded without open competition, increased by 129 per cent to $188bn during the Bush administration years.

Mr Obama in March issued a directive to government agencies to save $40bn in contracting costs in the year ending September 30 2011. The report published on Monday identified $19bn, or 3.5 per cent, in savings that could be made by the end of September next year.

“No business, large or small, could survive the continued waste and mismanagement the federal government has experienced,” Jeffrey Zients, OMB deputy director for management, told reporters on Monday morning. “It’s illogical, it’s unacceptable, and we will fix it.”

As an example of how money could be saved, the Department of Energy’s national nuclear security administration would conduct “reverse auctions” where contractors could bid online, with the lowest bid winning.

This “Ebay in reverse” system was expected to save the NNSA about 18 per cent on each contract, Mr Zients said.

Under the cost-saving measures, agencies have identified initiatives to reduce by 10 per cent the money spent through new high-risk contracts.

Suppliers Actively Compete for New Q1 Coal Contract

TRION, Ga., Jan. 19– At the end of 2009, Mount Vernon Mills, Inc. closed a contract that helped the company acquire coal for manufacturing operations over Q1 of 2010. The organization teamed with BidBridge, a proven eAuction services provider for the public and private sectors, to leverage an electronic reverse auction platform.

Mount Vernon Mills, Inc. is a diversified and integrated manufacturer of textile, chemical and related products for the apparel, industrial, institutional, and commercial markets. The company’s Trion, GA location consumes approximately 1200 tons of coal per week to fuel diverse manufacturing operations like the production of denim, fabrics with indigo and sulfur dyeing, piece dyed and finished fabrics (cotton and blends) including flame retardant, military uniforms, sportswear and career apparel.

Trent Jordan, Division Controller for Mount Vernon Mills’ Trion location, chose BidBridge’s unique eProcurement platform because it was the best option for running a smooth, efficient bid that could potentially save money for the organization. In partnering with BidBridge, Mount Vernon Mills placed its suppliers in a forum that allowed them to actively compete for the company’s business.

In an event that logged 35 first place turnovers and 76 time extensions, four suppliers placed 84 bids to win the business. The bid event resulted in a significant cost savings that represents just one of the many benefits purchasing organizations gain by using BidBridge’s e-Auction platform.

“With BidBridge, the bid event ran smoothly, and we were able to monitor the entire process as it unfolded via the company’s web-based platform,” said Jordan. “At no cost to us, we were able to leverage the dynamic transparency and reporting capabilities provided by BidBridge to keep the reverse auction process under our control at all times.”

About BidBridge

Founded in 2002, Louisville-based BidBridge provides fully managed eAuction services to both the public and private sectors. Through its competitive sourcing and online procurement system and services, 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 taxpayer, corporate and investor dollars, ultimately producing a positive effect on compressed budgets.

For more information, please visit: www.bidbridge.com.

Professional Services- Information Technology Management Office, SC – Trident Technical College Continuing Education Course Print Contract-

Trident Technical College engaged BidBridge for a print contract for the college’s education course materials. The bid consisted of only a single line item for this individual contract.
Seven suppliers competed for the contract. Twenty-seven bids were placed among the seven suppliers yielding 13 first place turnovers.
Through engaging BidBridge, Trident Technical College achieved true market value for the print contract and saved 10% versus its initial budget.

Hall County, GA engaged BidBridge for the purchase of 2010 Microsoft Licenses for its software.

15 suppliers competed in the 49 minute event, yeilding 164 total bids, 13 first place turn overs and 35 time extensions.

The final pricing yeilded a 17% savings versus budget and against state contract price.

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
- Posassium 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.

Incumbent Supplier Wins Bid; Supports Reverse Auction Platform

LAKELAND, Fla., Dec. 1  — The City of Lakeland, FL recently leveraged new technology and strategy for the bid process on its one-year waste hauling contract. The deliverable: hauling 19.25 million gallons of fertilizer and class AA residuals from two wastewater reclamation plants over a one-year period. The platform: BidBridge, a proven e-procurement services provider for the public and private sectors. The result: a 40 percent savings for Lakeland against the previous year’s contract.

BidBridge creates a dynamic purchasing environment by offering a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, giving suppliers the opportunity to actively compete in the marketplace. The ensuing bid process provides entities with an alternative to the public sector’s traditional process of a one price per supplier response, while maintaining the integrity of the competitive, sealed bid process.

In the past, BidBridge and Lakeland had teamed for several successful events, including calcium carbonate transportation (one-year contract), tennis court resurfacing and floor resurfacing bids. For Mark Raiford, Lakeland’s Director of Purchasing, continuing the city’s success with BidBridge was simply the best option.

“Our past experiences had led us to the conclusion that BidBridge was a professional, cutting-edge organization with the talent and tools to help get the job done,” said Raiford. “This time around, BidBridge stayed true to its reputation and helped us achieve some of the best results we’ve seen so far.”

Seven hauling service providers competed over the one hour and 41 minute event, logging a total of 250 bids and 86 clock extensions. First place changed hands a total of 57 times. In the end, the incumbent supplier was awarded the bid.

“Lakeland is a prime example of how public organizations can continually leverage a reverse auction platform in their procurement activities,” said BidBridge CEO Jim Headlee. “It really doesn’t matter what the item or service is; reverse auctions that leverage the right technology for buyer visibility apply to almost any purchasing activity.”

About BidBridge

Founded in 2002, Louisville-based BidBridge provides fully managed e-auction services to both the public and private sectors. Through its competitive sourcing and online procurement system and services, 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 taxpayer, corporate and investor dollars, ultimately producing a positive effect on compressed budgets.

For more information, please visit: www.bidbridge.com.

In Sweetwater Union’s first event with BidBridge, two suppliers competed on a bid for eight 2010 and 2011 model vehicles including:

2 cargo vans

2, ¾ ton pick-up trucks

1, 1-ton crew cab with standard pick-up

3, 1-ton crew cab and chassis

The event lasted 2 hours and 36 minutes, yielding 145 bids, 112 time extensions and 73 first place turn-overs. The two suppliers’ prices were separated by only 0.04%, indicating true market value for the vehicles was achieved.

Overall, Sweetwater Union High School District achieved 34% savings versus budget.

It is important to note that Sweetwater had the opportunity to purchase the vehicles through the pricing established by the City of San Diego. The City of San Diego’s pricing was established in 2008, when the price of vehicles was soft due to the state of the automotive industry at that time. Even compared with the pricing established by the City of San Diego last year, the bid still achieved 34% savings.

Additionally, the two automotive dealers participating in the event were excited about the process and are looking forward to participating in another bid with BidBridge.