Using eAuctions to Save Taxpayers’ Money

Situation

  • Public sector client needed to rationalize a range of over 500 products across four sites
  • Spend: Approximately £112.5k per annum
  • Same incumbent supplier for many years
  • Major goal was to establish a new contract with improved service and delivery levels without increasing costs
  • Full compliance with OJEU legislation and all necessary public sector rules were observed prior to and during the eAuction

 


Solution

  • Incumbent supplier as well as suppliers on the existing national framework were invited to participate in the eAuction
  • Three suppliers confirmed their intent to participate, agreeing to T&Cs and the eAuction start prices prior to event
  • The eAuction was structured into a single lot with the contract award based on the best price achieved during the eAuction and full compliance

Result

  • More than 50 bids submitted by participating suppliers
  • eAuction took approximately 90 minutes
  • Improved service and delivery options achieved
  • £37.5k savings identified – 33%