For the Buyer: Utilizing the
Online Reverse Auction
Marketplace
Breakout Session # WC11-499
Presenters: Robert Crossett & Zach Ennis
Tuesday, July 12
4:00 – 5:15 pm
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FedBid is…
… a multi-billion dollar online marketplace where government and
private sector buyers can access a managed network of 40,000+
qualified sellers at the touch of a button.
… a buyer-powered marketplace that utilizes a reverse auction
model to connect buyers with the most competitive sellers of
commodity goods and simple services.
… a simplified process that saves time and money by dramatically
reducing the administrative challenges of managing large-scale
commodity and spot buys.
… a managed marketplace with a customer care team that is
always available to provide personalized service and
troubleshooting support for every client.
… an organization that believes in the profoundly American ideals
of equal opportunity, access, competition and transparency.
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Client Success
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How FedBid Works
Buyers / Sellers
Register
• Users register one time
• FedBid vets Buyers & Sellers
• Users agree to marketplace Terms and Conditions
Buyer Posts
Requirements
• Buyer populates designated fields
• Buyer can repost to change procurement strategy
• Dedicated teams provide buyer training and support
Sellers Notified
• FedBid provides seller sourcing, recruitment and training
• Buyer can notify sellers using set-aside and designated contracts
• Buyer can notify sellers through customizable seller communities
Sellers Submit
Bids
• Sellers submit bids through a 24x365 marketplace
• Sellers see their relative position in a “Lead/Lag” format
• Sellers can rebid manually or set an auto-rebid range
Buyer Evaluates
Bids
• All bids (including “no bids”) documented for the Buyer’s file
• Buyer performs due diligence on bids
• Buyer evaluates bids pursuant to stated award criteria
Buyer Makes
Selection
• Buyer makes award based on price or best value
• Buyer can pay Seller using purchase order or purchase card
• Buyer can download PDF of buy abstract and top 3 bids to e-file
Sellers Notified
• Selected seller/awardee receives email notification of award
• All other sellers receive notification on FedBid dashboard
• FedBid provides QA process to help ensure buyer satisfaction
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Benefits
• Reduces direct costs and increases time savings and
efficiencies
• Facilitates transparency, accountability and auditability
• Provides enhanced documentation of competition and bid
information
• Generates important, timely and accurate management
reports
• Improves sourcing by increasing competition
• Displays a complete range of competitive scenarios
• Increases small, minority, and local business utilization
and opportunities
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Tangible Results for Buyers
Buy Metrics
Agency A
Agency B
Number of Buys
6,180
FY10
Awarded
Buy
Statistics
Buyer Independent Cost
Agency C
2,889
615
Estimate
$296,512,346
$351,114,478
$100,157,896
Final awarded price
$257,967,830
$300,371,587
$96,112,161
$38,544,516
$50,742,890
$4,045,735
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Average number of
Sellers notified
2,811
1,938
4,022
% of dollars to small
businesses
83%
92%
76%
NET savings in dollars
Average number of
Sellers bidding
Average number of Bids
per Buy
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Contract Magazine, June 2011
“Through the online
marketplace, our
contracting officers
instantly expanded the
community of sellers they
solicit well beyond their
existing rolodexes.”
“Because the online
marketplace has proven so
effective for us, we are
now expanding the
program to our 56 field
offices around the
country.”
-Deborah Broderick
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Deborah Broderick: Procurement Section Chief
& Chief Procurement Officer at FBI
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Case Study
HeartStart FR2 + Defibrillator
Buying Organization:
Federal Bureau of Investigation
Category:
Safety and Rescue Equipment
Independent Cost Estimate: $110,436
Award Price:
$96,034
Savings Amount:
$14,402
Savings Percentage:
13%
Number of Seller Responding: 4
Number of Bids:
12
Significance:
The defibrillator requested in the buy details was discontinued, by
allowing sellers to bid Brand Name or Equal sellers were able to bid
on the new model available by the manufacturer.
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Case Study
Less Lethal ammunition
Buying Organization:
Category:
Independent Cost Estimate:
Award Price:
Savings Amount:
Savings Percentage:
Number of Seller Responding:
Number of Bids:
Bureau of Alcohol, Tobacco & Firearms
Armor, Personal
$52,250
$43,240
$9,010
17%
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Significance:
In this reverse auction competition, the seller that provided the market
research quote reduced pricing in direct competition with other
qualified sellers.
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Section 1
Create a Buyer Account
Click “Buyer Sign In’ to
begin creating your
account.
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Create an Account
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New Buyer Registration
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Confirm Registration
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Confirmation & Create Password
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Creating Your Password
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Buyer Sign In
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Home / My Dashboard
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Selecting a Category
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Additional Buy Information &
Line Item Detail
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Buy Terms
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Suggested Source
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Shipping Information
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Confirmation Page
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Home
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Bid Results
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Accepting Bids
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Additional Information
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Confirmation of PO
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Confirmation of Bid Acceptance
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Q&A
Robert Crossett
[email protected]
Zach Ennis
[email protected]
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