Orbis Online Helps Air Force Save
Nearly $1 Million
Orbis Online, a leading e-procurement
solutions provider, announced Wednesday that it successfully completed
the first real-time reverse auction for its client, Randolph Air Force
Personnel Center (AFPC), which resulted in savings of nearly $1 million
dollars. The auction, which took place on Friday, January 19th of 2001, utilized
Orbis Online's proprietary Web procurement technology and enabled the
Air Force to purchase 833 state-of-the-art (933MHz) computers.
Orbis Online, Inc. describes the Randolph auction as "reverse online
auctioning," a procedure in which a buyer posts a Request for Quote
(RFQ) on the Orbis Online website (www.orbisonline.com).
Plans were to conduct the sale online in a compressed time of approximately
thirty minutes. (Any auction can be extended, however, should a bid
be submitted within five minutes of the close of the auction, in which
case it can be extended for an additional five minutes.)
During the auction, the AFPC could view all the bidders and their bids
in real-time. The suppliers who were participating, however, could only
tell how many other bidders were present for the auction and their corresponding
bids. Specific identities of competing firms are only disclosed if the
buyer so chooses.
In the case of the AFPC, extremely
competitive potential suppliers kept the auction open for 3 ½
hours and ultimately saved $930,000 for Randolph, determined by comparing
the final contract price with prices offered on existing General Services
Administration Schedules (GSA). GSA's quote for the exact same equipment
was more than $2.06 million- 45% higher than the actual contract awarded.
"The potential for this tool in the government arena is enormous,"
said James Strader, chief executive officer of Orbis Online. "What
this means to the average taxpayer is that the military is able to stretch
its already under-funded budgets and acquire the tools needed to operate
Bobby Allen, chief, Program Management Division, AFPC, added, "The
return that we received using this online procurement platform is amazing
considering the ease and speed in which the system works."
About Orbis Online
Orbis Online is a San Antonio-based technology company and owns three
web properties through which it provides its unique, proprietary software
solutions to the public and private marketplaces. Orbis Online is a
privately held corporation and has a rapidly growing community of registered
users, businesses, government agencies and affiliates who enjoy the
benefits of its many patent-pending online procurement and asset disposition
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