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Resources Case Studies FAA Generates Large Savings in IT Hardware

FAA Generates Large Savings in IT Hardware

The Federal Aviation Administration (FAA) conducted a reverse auction using K2 Sourcing’s managed reverse auction service that is estimated to generate over a million dollars of savings over the life of the contract. The bulk of the contract is for the purchase of IT Hardware (desktops, laptops, monitors, etc.). The contract also includes a lesser spend on related professional services.

Hardware was broken out into two major bid groups. The first group included contract pricing for specified items and the second group utilized discounts off list price. To be eligible to participate in the reverse auction, suppliers first had to pass a technical down-selection review. Once deemed eligible to participate, suppliers conducted bids under secure aliases.

Participants placed over 240 competing offers in slightly under three hours. Both bid groups posted significant savings. To execute the event the FAA utilized K2 Sourcing’s strategic sourcing services. From the start of the project, K2 Sourcing worked very closely with the FAA to understand the contract requirements and desired results. Utilizing the information, K2 Sourcing designed an auction that would yield the best results. K2 Sourcing provided the hosted auction application, setup the system, trained the suppliers, provided dedicated support during the event, and submitted detailed post-auction analysis to the FAA.

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