Auction PR Publicity Announcements News and Information
Auction PR Publicity Announcements News and Information

BidBridge Helps City of Chicago Save Nearly $1 Million with Reverse Auction

BidBridge, an eProcurement services provider for the public and private sectors, announced today that it worked with the City of Chicago to save nearly $1 million in a recent reverse auction. With the help of BidBridge, the City of Chicago successfully implemented an eProcurement system in place of the traditional sealed bid auction.

BidBridge facilitates a secure, real-time electronic sealed bid platform that allows vendors to place multiple bids on a project, replacing the public sector’s traditional process of a one price per vendor response. In Chicago’s recent reverse auction for high speed runway snow removal units, the first and second place vendor bids were separated by a mere one-half percent – a strong indicator that Chicago found true market value for the product, simultaneously saving more than one million taxpayer dollars.

The City of Chicago’s first reverse auction took place between four vendors who placed 42 bids, overturning the first place bid 17 times. The winning bid stood at $19,586,940 – nearly $1 million dollars less than a contested one-price formal bid that occurred several months before with the same four suppliers.

BidBridge’s proprietary web-based event viewer gives the buyer a unique perspective on the bidding process. The buyer can monitor every updated bid in real-time for full transparency. Suppliers only see their own bid amounts and rankings and lower the bid if they wish in an effort to secure first place, providing a truly competitive environment that helps drive prices to market value.

“BidBridge is a tool designed to increase transaction efficiency, transparency and cost controls by using strategies shown to deliver an average of 13 percent in savings,” said Jim Headlee, CEO of BidBridge. “The program was developed to help both the buyers and suppliers – the former through transparency and cost control and the latter through the creation of a better opportunity to earn the business.”

Headlee also said that BidBridge’s management is well-versed in making sure the program is utilized in compliance with state and municipal procurement laws.

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About BidBridge

Founded in 2005, Louisville-based BidBridge provides e-procurement services to both the public and private sectors, including cities, towns, municipalities and the medical, educational and corporate sectors. Through its competitive sourcing and online procurement system, 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 tax payer, corporate and investor dollars, ultimately producing a positive effect on compressed budgets.

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