Five neighbouring local authorities in the west of England* decided to pool their resources and aggregate their requirements to put in place a contract for the supply and delivery of office supplies.
*[The five Authorities: South Gloucestershire Council; North Somerset Council; Bath and North East Somerset Council; Bristol City Council; and the West of England Combined Authority.]
The Authorities identified the Crown Commercial Service Office Supplies for the Wider Public Sector framework (RM3703) as the best route to market for its needs.
The Authorities decided to run a further competition under the framework for an initial contract period of 2 years. The Authorities clearly set out their specific requirements, including ordering, delivery and payment conditions.
Suppliers were required to meet the minimum quality expectations set out by the Authorities in order to participate in the eAuction.
Suppliers submitted opening prices against the core product list as part of their tender response. A reverse price-only eAuction was then used to maximise the potential for savings, with suppliers competing against each other in real-time to revise down their prices in order to secure the contract; suppliers were required to fix their prices for the 2 year Contract period.
CCS managed the eAuction on behalf of the Authorities.
The eAuction generated significant competition, a total of 120 bids being placed by just 2 suppliers over a 7 hour period.
The eAuction opened -9% from the Customer’s baseline and closed at an impressive +53%, a saving of £133,000. The winning Bidder reduced their opening bid by 61%, equating to £187,000 over the 2 year contract.
“The Authorities agree that using an eAuction for a contract such as Office Supplies proved to be the best option for generating savings against our baseline. We found understanding our product requirements and management information was key to selecting the items in our core basket which resulted in getting the best price on the lines we bought most. The CCS team supported us throughout the process and not just the eAuction. We liked how the auction was visible on the day so we could see the bidding action”
To take part in an eAuction or find out more about the framework:
Visit the office supplies framework web page: http://ccs-agreements.cabinetoffice.gov.uk/contracts/rm3703
or Fill in our online form and mention ‘eAuction office supplies’ in the comments box and we’ll get back to you.
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