Township tests Internet based competitive bidding

| 29 Sep 2011 | 10:11

    Erie - When Fairview Township in Erie County put out requests for bids on a diesel-powered generator and two transfer switches, the supervisors decided to utilize a new bid process - an Internet-based reverse auction. The auction was conducted last week by eDynaQuote, a provider of Internet-based competitive bidding services headquartered in Erie. As a result of using the new bidding process, the township estimated it will pay approximately 10% less than it had expected. An Internet-based reverse auction is a real-time online competitive bidding event in which bidders compete to sell the requested product or service to the buying organization. The process enables bidders to know immediately where their bids rank, and to alter their bids immediately if they choose. In the Fairview Township auction, three companies participated, and all three companies submitted multiple bids before the auction had ended, lowering their prices with each subsequent bid. “As the auction progressed, I was able to literally watch the savings materialize,” said Township Supervisor David Carner. “Internet-based competitive bidding really streamlines our process and saves us both money and time.” Prior to the auction, Fairview Township Supervisors passed a resolution authorizing use of the competitive electronic auction bidding (reverse auction) process. They then issued and advertised the bid notice in the usual manner. The bid specifications and other relevant information were posted on the eDynaQuote Web site. Normally a government unit has to make paper copies of bid specifications and mail them to interested bidders. Because all of the bid information was posted on the Internet, bidders had easy access to the information they needed to formulate a bid. And, instead of submitting sealed bids on paper, they simply registered with eDynaQuote and signed in to the secure site on the announced day and time of the auction. The ability of Pennsylvania local government units - municipalities, school districts, councils of governments, authorities, etc. - to use the Internet in the competitive bidding process was made possible by the passage last summer of the Local Government Unit Electronic Bidding Act, PA Act 88 2006. The act allows Pennsylvania local government units to use the Internet in their competitive bidding process and take advantage of the significant potential for saving time and money. eDynaQuote, headquartered in Erie, offers Internet-based competitive bidding services and consulting for businesses, organizations, and governments. For additional information, visit .