City of Elkhart Saves Taxpayer Dollars Using IACT Reverse Auction Purchasing Program
Elkhart, IN, June 29, 2005The City of Elkhart saved taxpayers about $25,000 today on the purchase of a new fire apparatus through an innovative program provided by the Indiana Association of Cities and Towns (IACT).
Using IACT's Reverse Auction Purchasing program, the city held a reverse auction event where vendors bid against each other to win the city's business and provide their lowest price. The initial low bid of $479,999 was topped by Ferrara Fire Apparatus, Inc. by offering the city a price of $448,700. The city expected to pay at least $475,000 for the equipment. Final purchase is pending review by city officials.
Reverse Auction Purchasing is a new purchasing method in Indiana made legal on July 1, 2004, through HEA 1266, a law for which IACT successfully lobbied. "IACT sought legislation and began the Reverse Auction Purchasing program to help our members, the cities and towns of Indiana, purchase products and equipment at the lowest possible price and save taxpayer dollars," said Matthew Greller, IACT Executive Director.
Elkhart officials are happy with the result. "We are very pleased with the price we received for the truck, and IACT's program helped us come in under budget," said Elkhart Fire Chief Tony Johnson. "We plan to use the program again in the near future, and there is no turning back in city purchasing. We'll continue to use this innovative process, judging by the savings it has provided today," Johnson continued.
Elkhart Mayor David Miller commended IACT for helping cities and towns to find a way to better compete. "We are saving taxpayer dollars by using reverse auction to purchase. The $25,000 savings we enjoyed today would almost pay for another police squad car," Miller said.
Chief Johnson said the vendors that participated also benefited from the new purchasing method. "Instead of having just one chance to win the city's business, the vendors had equal opportunity to adjust their prices and sell the equipment to the city. It was a winning situation for everyone involved," Johnson said. "We are able to work smarter and more efficiently with the help of IACT."
Reverse Auction Purchasing works by providing a live website where vendors bid against each other to offer their lowest possible price and win the municipality's business. During a set period of time, usually 30 minutes, vendors log on to a secure website to participate. The municipality holds a public meeting where instead of opening sealed envelopes, as is done with traditional "paper" purchasing, officials watch the vendors compete against each other for their business in a live, dynamic marketplace. IACT's technical partner in offering the reverse auction purchasing program is Indiana-based Iasta.com, Inc., a company that offers e-Sourcing software and professional services nationwide.
"We have had tremendous interest from municipal officials about the program, and Elkhart officials are on the cutting edge of providing good government to citizens by using reverse auction purchasing to save money," said Greller. City officials from Auburn and Goshen, including Mayors Norm Yoder and Allan Kauffman, attended the event to learn more about how Reverse Auction Purchasing can help their communities. Elkhart County Auditor Larry Ernest was also in attendance.
The Indiana Association of Cities and Towns (IACT) is a coalition of municipal officials who seek to improve the quality of life in Indiana through effective government. IACT is one of the oldest state municipal organizations in the country at 114-years, with 468 cities and towns as members. IACT advocates for municipalities as the official voice of municipal government in Indiana, and promotes good government through education, training and leadership.
About Iasta
Located in Indianapolis, Iasta is a leading global provider of sourcing software and service solutions. As a significant and emerging provider of e-Sourcing applications and services, Iasta has amassed an impressive client list of over 60 companies, most of which are within the Global 1000. Through its unique combination of industry-leading web-based software, in-depth supply market information, and implementation of sourcing best practices for supply chain management, Iasta has helped customer's source goods and services with an average cost reduction of 17%, in addition to significant reductions in sourcing cycle times. For more information about Iasta, please visit www.iasta.com or call 317.594.8600.
About IACT
The Indiana Association of Cities and Towns (IACT) is a coalition of municipal officials who seek to improve the quality of life in Indiana through effective government, and is a member of the National League of Cities. IACT is one of the oldest state municipal organizations in the country at 114-years, with 449 cities and towns as members. IACT advocates for municipalities as the official voice of municipal government in Indiana, and promotes good government through education, training and leadership.
Iasta is a trademark of Iasta.com, Inc. All other products and brand names are trademarks or registered trademarks of their respective owners.
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