Q. In a nutshell, how does eFederalSystems benefit the Government Sector?
eFederalSystems benefits the government sector in many ways. First we provide our clients with a global pool of suppliers and/or buyers by utilizing the power of the Internet to access potential suppliers and/or buyers from throughout the world. Second, eFederalSystems as part of its job performs all of the tasks necessary to run a successful eProcurement events without requiring additional support from the agency, unless of course they would like to participate. Additionally, eFederalSystems ensures that the event itself runs without a hitch, because of our technical capability, the software we employ, and the real-time support that we provide. Finally, eFederalSystems benefits the governemnt sector because our pricing is not only competitive it is by far the least expensive in the industry for what we provide.
Q. What is a Reverse Auction?
A reverse auction is one where the agency (auction originator) wants to purchase commodities, material and/or services at the lowest price possible, without sacrificing quality. Bidders (suppliers) are pre-qualified and when the auction begins bidders bid what they will charge to supply a commodity. This ensures that the governemnt gets the best price even reducing the GSA prices to the lowest possible point. As the auction proceeds the best price to the client is actually the lowest price, hence the name reverse auction. At the end of the auction, the final price is the lowest price at which the winning supplier will provide the material to the client.
Q. What is the normal or minimum dollar amount of procurement transaction that receives the greatest benefit from this type of auction?
eFederalSystems fees for eProcurement events are based on the lowest established price for a government (Federal, State or Local) and/or agency. eFederalSystems provides eProcurement events at an extremely low flat fee especially established for government agencies.
Q. How do you insure that suppliers are quality and reputable?
In order for eFederalSystems to ensure that its client’s suppliers and/or buyers are of the highest quality, eFederalSystems pre-qualifies each and every supplier and/or buyer. The pre-qualified list is presented to the client for final approval, ensuring that both eFederalSystems and the client are in complete agreement on the final list.
Q. Do you use the buyer’s current suppliers or do you find potential new suppliers?
eFederalSystems does both. For every auction we start with the buyer’s list and then proceed to supplement that list with additional suppliers. All suppliers are then subjected to eFederalSystems qualification procedures and as stated earlier a final list is developed with the client.
Q. How do you obtain suppliers to participate in reverse auctions when they may lose margin through the competitiveness of the bidding process?
The electronic auction and the RFP and preparations for bidding typically bring significantly increased efficiency to the suppliers' marketing procedures, and also reduce time to market for the product. There is a close understanding of specifications and therefore potentially less product wastage in the chain. Suppliers can also open up new markets and customers through improved visibility worldwide, and may also obtain added value benefits in more efficient logistics purchases for product delivery.
Q. How does your service take the hassle off of the buyer?
eFederalSystems takes all the hassle off the buyer because we do all the work. When a client buys into an eProcurement event, eFederalSystems does everything required to ensure that a successful event ensues. We develop the supplier list, develop and deliver all specifications, in the form of an RFP, train the bidders, and conduct the auction. All clients are allowed and encouraged to participate fully but this is not a requirement. Doing all this work saves the clients, and suppliers time and ultimately money while providing a successful auction environment.
Q. What is the average percentage you are saving buyers?
Our clients save on an average 15 – 18% on each reverse auction. Assuming your agency has a $1,000,000 reverse auction which results in a 15% savings, your agency saves $150,000 that goes right to the bottom line.
Q. Can you set up multiple and customized eProcurement events?
eFederalSystems cannot only run multiple auctions but we also have the capability to customize auctions to the individual needs of our clients. We have conducted eProcurement evens with multiple variables and if necessary we can enhance the auction software to provide additional capabilities.
Q. How long does the typical auction process take?
Although the auction itself takes place in less than a single day, generally about 1 hour, the preparation work can take anywhere from two (2) to six (6) weeks to complete.
