SOURCE: K2 Sourcing, Inc.

K2 Sourcing, Inc.

November 21, 2011 06:00 ET

FAA Generates Large Savings Using K2 Sourcing's Managed Reverse Auction Service

MILWAUKEE, WI--(Marketwire - Nov 21, 2011) - The Federal Aviation Administration (FAA) conducted a reverse auction, using K2 Sourcing's Managed Reverse Auction Service, that is estimated to generate over a million dollars of savings over the life of the contract. The bulk of the contract is for the purchase of IT Hardware (desktops, laptops, monitors, etc.). The contract also includes a lesser spend on related professional services.

Hardware was broken out into two major bid groups. The first group included contract pricing for specified items and the second group utilized discounts off list price. To be eligible to participate in the reverse auction, suppliers first had to pass a technical down-selection review. Once deemed eligible to participate, suppliers conducted bids under secure aliases.

Participants placed over 240 competing offers in slightly under three hours. Both bid groups posted significant savings.

The FAA selected K2 Sourcing's managed event service. From the start of the project, K2 Sourcing worked very closely with the FAA to understand the contract requirements and desired results. Utilizing the information, K2 Sourcing designed an auction that would yield the best results. Additionally K2 Sourcing provided the hosted auction application, set up the system, trained the suppliers, provided dedicated support during the event, and submitted detailed post-auction analysis to the FAA.

Matt Miller, President of K2 Sourcing, states, "Government agencies are aggressively looking for creative ways to control costs while working more effectively and efficiently. To me, the FAA provided another great example of how eSourcing and reverse auction technology can generate improved results over traditional paper-based bids."

About K2 Sourcing: K2 Sourcing provides SaaS eSourcing applications including vendor registration, Reverse Auction, eRFP, eRFI, eRFB, eQuotes and eRFx. Applications are supported by the Best Service in eSourcing from support and technical writing to event management and global sourcing.

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