This Purchasing Organization is
accepting bids on a significant National Shipping contract originating
within 15 miles of downtown Dayton, OH. The
Buyer is interested in establishing a long-term relationship with a preferred
supplier, while in turn, reducing their current number of suppliers to make this
process more efficient. Suppliers
who are able to bid on this entire opportunity are invited to bid online in this
Reverse-Auction. We look forward to
your participation and ask that you read ALL specifications before placing your bid.
has been growing at approximately 5
-7% annually and is expected to continue. This
could come in the form of an increased size of shipments or more frequent
shipments to the locations listed.
volume going to any individual destination or the balance between FTL/LTL may
change over the term of this contract.
new alternative being presented to the End
Customer of this material will reduce the
weight of this product by an estimated 20%. This
could be reflected in a reduction of average weight per pallet or as a decrease
in the total number of pallets per shipment. Suppliers will not need to factor
this into the formulating of their bid, but must be prepared to negotiate any
reduction in prices should the End Customer choose this option.
exists for this first awarded term to be extended an additional one year, based
on the buyers ongoing discussions with their End Customer. This extension
does not represent a second term award, which may also be available.
must be prepared to explain
how, if any, price changes that would occur with a weight increase or
decrease during their on site presentations.
should understand that the Buyer may need to add locations (1-3 per year) during
the duration of the contract, as the End Customer opens up new locations.
It is expected that the supplier will negotiate
freight rates to the new locations in good faith, any additional business will
be conducted at similar discounted rates for these new
business provided under this award or within this award term, including new
business or increased quantities gained, will be governed by the requirements
stated in this Reverse-Auction and the Sorcity.com Member Agreement.
consider the additional opportunity stated above when working up their quotes
and bid accordingly, but there is
no guarantee of growth.
We have provided an
attached Excel spreadsheet (Line Item Worksheet) that provides the 27 locations that the
Buyer has shipped within the last year. Actual quantities
in addition to estimates for the months of November and December have
been used to formulate 2005's annual totals. However, as indicated above, this
bid opportunity that will extend through June 2007.
This list is
provided because a forecast demand is not available due to the unpredictable
ordering of the Buyers clients, some of which is regular in nature. Actual destinations
and number of pallets shipped will vary over the two-year award period, but the
Buyer is trying to establish relative price points so shipping costs can be
easily derived for relative shipments.
Suppliers must bid knowing that pricing to similar distance
destinations and pallet loads will be provided to the Buyer at similar rates.
In other words, the discount applied to the items listed in the
attached Line Item Worksheet must be the same for all similar shipments under this award.
there are discounts offered for an increase in number of pallets, change in
pallet size, weight increase, or for any other reason, either for LTL or FTL, suppliers should factor this into their bid and should include a table in the
Line Item Worksheet reflecting these discount levels.
Suppliers should understand that what is listed on this Line Item
Worksheet represents a Market Basket, used to establish pricing for a variety of
relevant destinations and a variety of
pallets per shipment. The Line Item
Worksheet contains two columns for each line item (shipment) to be priced; the Truck Load
Price and the Fuel Cost. Entering these will automatically calculate a total for a
Total Line Item Price. Please
note that the Starting Bid is more in line with the actual value of the total opportunity
that the specific "Market Basket" that you will use to bid,
therefore it should be understood that the initial bid from suppliers on this
"Market Basket" will be substantially lower than the Starting Bid.
make the bidding comparable across the supplier-base, the
buyer has chosen a set Fuel Surcharge for all suppliers to use for this bid. The buyer understands that this will not necessarily
represent the fuel percent charged at the time of each shipment, based on
fluctuations in the National Fuel Average, but it is provided to insure that all suppliers are basing their bid on a similar fuel
The fuel factor all suppliers are required to use for this bid is:
As of 10/31/2005
For your reference
here is the US Department of
Energy Web Link: http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp
Once the contract is awarded, the buyer agrees to accept weekly
fluctuations in fuel price based on the National Fuel Average released by the
Department of Energy. This must be provided to the Buyer via email and to Sorcity at
prior to any price change, and must include
the supplier prefers to provide a fixed fuel charge for the full term or longer
terms than on a weekly basis, they must indicate their chosen option, in the
appropriate place, on the Line Item Worksheet provided.
included in the Line Item Worksheet, suppliers must provide their Fuel Factor formula
along with documentation (can
be written statement, table, spreadsheet, etc.) explaining how their fuel
surcharge varies in relation to the National Fuel Index. The Buyer can
then factor this into their "true
cost" analysis. The three lowest bid suppliers must
be prepared to explain how this Fuel Factor works when they come in to present
to the Buyer immediately following the close of this online bid event, as noted
in the Key Dates below.
following are links to the pictures with descriptions of the three main products,
which are labels and tags.
(Click on the Picture to enlarge.
Additional Specs also on the enlarged picture)
following are specific contract
requirements. Please read
this list carefully before placing a bid.
Any clarifying questions or exceptions MUST be asked through the above
Question button BEFORE placing your bid in this Reverse-Auction.
Bids will not be accepted by the Buyer in any other manner, so we
appreciate your complying to the instructions in the notification email you were
sent informing you of this opportunity.
shipments will be on an "as ordered" basis and may include between
none to several shipments in a single day.
Suppliers will need to be responsive to this variable need.
The supplier must PICK UP shipment same day if
call for pickup is made before noon, by
10:00 am next morning if call is made after noon. All Times are Eastern
Shipments are to be shipped based on a
Shown will be expected normal delivery times (in days) for both LTL and FTL.
Suppliers will be expected to realize this for the vast majority of shipments shown, poor weather delays (i.e. winter snow conditions) not
withstanding. Should supplier take exception to any data in table, they
should do so during question period.
time performance reports (# of days - on time, late, etc.) are required
quarterly. The Buyer would prefer to have this option accessible
Buyer requires the ability
to locate in-transit shipments by phone. The buyer would also prefer to
have this option available online.
single, staged empty trailer must be left at all times for loading.
This empty trailer will be dropped off every time a full trailer is picked
up. The buyer would prefer to have two staged trailers rather than
must be licensed, bonded and meet all industry requirements.
is responsible for any and all damage to freight during transit.
pallets must be single stacked. This means absolutely nothing can be
placed on top of the pallets. No exceptions.
Buyer uses a pallet size of 40" by 48".
the suppliers wish to utilize more of the trailer space, they may use a
logistics trailer. However, this must be done off-site.
KEY DATES: (anticipated
I confirm I meet all terms and
Will-Bid Event #3500
Suppliers must be registered with Sorcity
All clarifying questions should be entered
Receive Access Code and place opening bid
11/13 - 11/16 until
You may place your bids
Buyer will contact low bid suppliers
The 3 Lowest-bid Suppliers will present to
Buyer will award to best qualified Supplier
- All clarifying
questions or exceptions should be entered above through the [Question]
button. Answers will be posted,
shortly thereafter, for all Suppliers to view.
- If you need to speak
directly to a representative, please contact Sorcity at (972) 661-3265.
Any direct contact with the Buyer is strictly prohibited and may
result in immediate disqualification to participate in this bidding event.
- No bids will be accepted outside of the Buyers
online Reverse-Auction. Bidding,
in any other manner, will disqualify you for this opportunity.
Sorcity is providing
the bidder this
Item Worksheet to list per-unit pricing which
will automatically calculate the Total bid price. Only the Total from the Worksheet is entered in the Reverse-Auction
online. Do not attempt to enter line item prices online or your bid will be
Your general discount in a percent, and your Dun & Bradstreet number
should also be placed in the Line Item Worksheet where noted. In
addition to the Line Item Worksheet, a spreadsheet reflecting
Shipments has been provided for the Suppliers to reference. This
will give you a much more accurate idea of the exact number of shipments
made to a specific destination over a set period of time. However
this does not guarantee and any order patterns.
Once the bidding ends,
all bidders must send in their electronic Line Item Worksheet to Logistics@sorcity.com
within one (1) hour after the Reverse-Auction has ended.
The Buyer will not contact a supplier until their Line Item Worksheet,
with Fuel Formula, is received. Make sure you respond within the
placing a bid in this Reverse-Auction event, you
represent that your firm agrees to
all terms, stated in the Sorcity Member Agreement, and all content, terms,
and conditions contained in this document, except for any exception Sorcity,
or the Buyer, may
grant in writing, or on the Question & Answer page
linked above. The Supplier
understands that no assumptions are to be made, and that content, or
clauses, not contained in this event do not apply, unless pre-approved by
the Buyer and Sorcity.
The Buyer agrees to a
weekly price increase or decrease for fuel, based on the National Fuel Average.
This bid must be honored for the duration of your
discussions with the purchasing organization, per the terms stated in the
Reverse-Auction. If you are
unable to honor this bid at any time, you MUST cease discussions with the
Buyer and notify Sorcity. Please
read the Sorcity Member Agreement regarding not honoring your bid and any
associated penalty fine.
Buyer is requiring the three qualified,
low-bid suppliers to provide a presentation at the Buyer's location in the
Dayton, Ohio area. Please be prepared to provide this presentation on
November 22, 2005,
extenuating circumstances arise the buyer will reschedule the presentation for
Tuesday, November 29, 2005.
purposes of this bid, all suppliers must use these definitions. The
LTL cutoff of 14 has been used as an estimate for the purposes of this bid
only. After the bid has been awarded, the two parties involved will then
reach an agreement on an appropriate LTL cutoff. Exceptions
or clarification must be asked using the Question button above.
Full Truck Load - Any shipment of 14 pallets or more
Less Than Truck Load - Any shipment that consists of 1 to 13 pallets
Average To Be Used: $2.876
As of 10/31/2005
For your reference
here is the US Department of
Energy Web Link: