San Antonio, Texas - February 4, 2003 - Orbis Online, which provides high-technology e-procurement solutions and tactical sourcing services to world-class companies and large government agencies, secured several key contracts over the past five months that position the company for rapid revenue growth this year. These contracts further strengthen existing strategic alliances to fuel additional growth for Orbis Online.
The procurement reach of these contracts can only be described as staggering. "The buying power of the customers that have awarded Orbis Online contracts approaches one trillion dollars per year," said Dr. James Strader, CEO of Orbis Online. "These contracts will exponentially increase our revenue growth over the next several years, and, of course, we plan on acquiring more new, prestigious customers that will further accelerate this growth."
The major contracts awarded Orbis Online include large government entities
such as the U.S. General Services Administration (GSA), the State of
Texas, the University of Texas System, the U.S. Department of Energy
(DOE), the City of Miami Beach, FL, the County of Allegheny, PA, and
foreign government entities such as the Housing Development Board of
Singapore, which procures goods and services for the construction industry
in Singapore, Malaysia, Thailand, and The Philippines.
Winning these large contracts provides Orbis Online with recognition that is unique among providers of reverse auction software and services. "Contracts such as the one we were awarded by GSA establish a great deal of credibility for Orbis Online, especially in the government sector," said Dr. Strader. "We will also provide other complimentary products and services to these government entities through these contracts. In addition, Orbis Online is a finalist in contracts being awarded by several other government agencies in the very near future," added Dr. Strader.
The focus of Orbis Online on the government sector also is unique among companies in this field. In a period of high economic uncertainty, government contracts have solidly positioned Orbis Online for strong and steady growth.
For example, the GSA contract serves the procurement needs of a variety of federal government agencies, and many states and cities that can purchase from GSA contracts. This enables all federal agencies and other government agencies served by the GSA to achieve the best possible pricing for goods and services through the use of reverse auctions. Under the GSA contract, Orbis Online will facilitate self-service and full-service reverse auctions.
Orbis Online has been especially successful in winning contracts in its home state of Texas. The Texas Building and Procurement Commission (TBPC) awarded Orbis Online an exclusive contract to conduct reverse auctions for all state agencies and other state buying entities. These entities include cities, school districts, and many other agencies. In total, the contract currently includes approximately 1,500 state buying groups.
The contract for reverse auction services awarded to Orbis Online by the University of Texas System is used not only by the University System, but also by any institution of higher learning or agency that buys goods and services for the state.
David Horne, Chief Operations Officer for Orbis Online, said that these contracts and relationships have already begun to produce a dramatic ramp-up in activity for the company. "Just in the State of Texas, our procurement volume is increasing greater than 300% month over month," Mr. Horne said.
Orbis Online has developed several strategic partnerships with other successful companies as a result of its many contract wins, including the following: American Management Systems (AMS), a $1 billion global business and information technology consulting firm whose customers include 44 state, local, and provincial governments, federal agencies, and Fortune 500 companies; Science Applications International Corporation (SAIC), a high-technology research and engineering company based in San Diego, and one of the largest government contractors in the world with over 40,000 employees; and dNovus RDI, which supplies information technology services to federal, state, and local governments, and was the recent winner of the Small Business Vendor of the Year Award by the Federal Government.
Orbis Online brings enormous value to both buyers and suppliers who participate in reverse auctions. "We deliver value to buyers by helping them save money through lower purchase prices and a more efficient buying process," said Dr. Strader. "We also bring new, highly qualified suppliers into reverse auctions to increase competition for their business," he added. "For suppliers, we bring value by partnering with them to serve as an extension of their sales/marketing teams to build new relationships with world-class buying organizations that result in major new business opportunities. Orbis Online is also beginning to focus on converting suppliers who participate in these reverse auctions into buying customers so that they may reap the benefits of the cost savings and efficiency that reverse auctions provide," said Dr. Strader.
Orbis Online recently retained GEM Advisors Dallas, LLC, to pursue fund-raising opportunities from private equity investors. The new capital will be invested in the expansion of the business and the support of the company's growing customer base.
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