‘Reverse auction’ cuts cost of Vail road work
Vail, CO, Colorado
Using a new bid system has saved Vail taxpayers a sizeable bit of money for some road work this year.
Vail this spring tried using a “reverse auction” bid system to contract some road projects.
“Ultimately, Vail wanted to look at alternatives to the paper bid process,” said Chad Salli, project engineer for the town. “With the emergence of more efficient technology and strategies that can help us get a fairer price for services, the decision was not a difficult one.”
To run the reverse auctions, Vail hired BidBridge, based in Louisville, Ky. BidBridge uses a secure, real-time electronic sealed bid system that allows suppliers to place multiple bids on a project, replacing the traditional process of a one-price-per-supplier response.
The electronic bid took place May 27 between three construction companies and helped save the town 19 percent off the amount originally budgeted for the work. The auction process lasted 58 minutes, producing 35 total bids.
For more information, go to http://www.bidbridge.com.
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