Reverse Auction for Water Treatment Chemicals in North Carolina

Wednesday, April 4, 2012

Reverse Auction for Water Treatment Chemicals in North Carolina

eBridge ran a very successful auction for a local water & sewer agency in North Carolina.  It was their first experience with reverse auction and they started with 5 chemicals:  Potassium Permanganate, HFS, Acetic Acid, Ammonia and Sodium Hydroxide(caustic).  The suppliers were asked to provide a fixed price for one year that included all fuel and delivery fees.  All of the chemicals had multiple suppliers, with the exception of acetic acid, but the incumbent held the acetic acid pricing at the same level.  In the other four categories, the 1st & 2nd place suppliers ended with bids within 1% of each other. There were some dramatic savings realized for potassium permanganate (37% decrease) and sodium hydroxide (52% decrease).  The HFS and ammonia held steady on price, but the agency is guaranteed that price for the next year.  eBridge fees are paid by the awarded supplier, so there was no direct cost to the agency to run this bid.