Sourcing Aweigh

The Navy saves $900,000 using e-sourcing technology

Walnut Creek, CA  August 30, 2001  eBreviate, an EDS company offering a market-leading suite of e-sourcing tools, technologies and services, today announced the United States Navy's Fleet and Industrial Supply Center saved nearly $900,000 by purchasing container-packing services using Internet negotiation technology from eBreviate.

The Navy's existing agreement for container-packing services was originally budgeted for more than $3 million, but under its $13.8 million auction contract with eBreviate, which was announced in December 2000, the Navy was able to negotiate a price of  $2.1 million, saving 29 percent over the original price. The Navy is currently undergoing a standard review process to award the final pack and crate shipment services agreement to the successful bidder.

Online downward auctions from eBreviate save private sector buyers an average 16 percent, and sometimes as much as 50 percent, on the purchase of a wide variety of products and services. Federal agencies and the U.S. Navy now use these same technologies to pass similar savings along to U. S. taxpayers.

"The auctions we're conducting with our partners in the Navy are just the beginning of a program we believe will result in significant savings of government time and costs for years to come," said Luke Saban, chief operating officer of eBreviate. "To their credit, they are taking a leadership role in deploying Internet negotiation technology, thus driving efficiency into the procurement systems of the U. S. government."

A second eBreviate auction for the Navy's Inventory Control Point in Philadelphia for the acquisition of helicopter-mounted radar equipment containers is complete, resulting in savings of more than $30,000.

Al Edmonds, president, EDS Federal, said, "This is a great example of how EDS and our partners develop solutions to reduce costs. A Web-based downward auction uses technology to eliminate boundaries and enables innovative collaboration, which is an important part of what it takes to be successful in today's digital economy."