Some Entities in Nine-Organization Cooperative Expect to Save More than 20 Cents per Gallon

LEE'S SUMMIT, Mo., Dec. 22 /PRNewswire/ -- The Lee's Summit R-7 School District was looking for a more efficient and cost-effective way to attain fuel for buses and fleet vehicles. In deciding to approach BidBridge, a proven e-auction services provider for the public and private sectors, the school district's Director of Purchasing and Distribution Services, Ron Cox clearly recognized the expertise he could leverage to facilitate a fuel bid. The decision would pay off both fiscally and practically, allowing eight of the nine entities to establish a more seamless fuel purchasing process while saving a projected minimum of 10 cents per gallon in comparison to their existing fuel procedures.

To sweeten the deal for vendors and strategically pool purchasing power, BidBridge worked with Lee's Summit Schools to help create a cooperative consisting of nine public entities (seven school districts, one university and one city) located within a 15-mile radius of each other. While Lee's Summit Schools would be the lead agency, the cooperative would also include the City of Lee's Summit, the University of Missouri - Kansas City, and North Kansas City, Liberty #53, Blue Springs, Grain Valley, Fort Osage and Raytown School Districts.

While the traditional one price per supplier bidding process has been a staple in the public sector, BidBridge offers an alternative for public organizations that recognize the need for better competition in the bid process. By using BidBridge's secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, the cooperative was able to gain visibility and create a more dynamic and competitive purchasing environment.

In the resulting bid, vendors bid their delivery margins over a fuel index in an attempt to win business in the amount of 1.5 million gallons of estimated annual fuel usage (for the entire cooperative). The final bid results indicated the cooperative's entities would save at least 10 cents per gallon, with some projecting more than 20 cents per gallon in savings.

Cox commented, "While the chief concern was to attain fuel at market value, an even greater efficiency would occur as a direct result of the bid--namely, efficiency. By eliminating spot calling, transportation staff across the cooperative would gain much needed free time to focus on more timely tasks."

Previously, eight of the nine entities purchased fuel on the spot market, which required transportation directors to call fuel vendors as often as once a week to bid out each fuel delivery. By participating in the bid, the organizations will now purchase off the annual fuel contract, eliminating the need for spot calling.

"While a reverse auction platform offers great benefits to buyers regardless of the circumstances, one very obvious benefit stands out in this situation," said BidBridge Manager of Business Development, Mark Meredith. "These school districts are now purchasing fuel not only with better, more consistent pricing, but this contract has ushered in a more efficient purchasing process at the same time. It's exciting when you can add value all across the board."

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.

SOURCE BidBridge

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