City leverages e-auction platform to procure water treatment chemicals at true market value

DANVILLE, KY, Dec. 9, 2009 -- In October, the City of Danville, KY set out to acquire new contracts on eight water and sewer treatment chemicals...

• Logs less than two percent separation between first and second place bids on all line items

DANVILLE, KY, Dec. 9, 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.

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.

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