Logistics Services
Final Bid: $197,000.00
Bid Number 42: $200,500.00
Bid Number 41: $201,000.00
Bid Number 40: $201,500.00
  
Bid Number 2: $500,000.00
 First Bid:$838,000.00
 
Reverse-Auction ID:   3500
Date Ended: November 16, 2005
Duration:   13 days   2 hr  
Start:   Thu Nov 3, 2005 at 11:00 am CT
End:     Wed Nov 16, 2005 at 1:58 pm CT
Category:   Freight

Qty: 511   Unit: Each

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.

 

OPPORTUNITY:  

This opportunity 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.  

The volume going to any individual destination or the balance between FTL/LTL may change over the term of this contract.  

A 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.  

A possibility 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.

Suppliers must be prepared to explain how, if any, price changes that would occur with a weight increase or decrease during their on site presentations.  

Suppliers 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 opportunities.  

All 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.

Suppliers should consider the additional opportunity stated above when working up their quotes and bid accordingly, but there is no guarantee of growth.

 

BID STRUCTURE:   

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 Buyer’s 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.

If 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.

 

FUEL FACTOR: 

To 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 price.  

        The fuel factor all suppliers are required to use for this bid is:  

$2.876 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 Logistics@sorcity.com, 1-day prior to any price change, and must include the agreed-upon information.

If 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.

Also 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. 

 

PRODUCT DESCRIPTION:

The 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)

Product1 

 

Product 2

 

Product 3

 

 

REQUIREMENTS:

The 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.  

  • These 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 Time.
  • All Shipments are to be shipped based on a standard Timetable.  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.

  • Transit time performance reports (# of days - on time, late, etc.) are required quarterly.  The Buyer would prefer to have this option accessible online.

  • The Buyer requires the ability to locate in-transit shipments by phone.  The buyer would also prefer to have this option available online.  

  • A 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 one. 

  • Carrier must be licensed, bonded and meet all industry requirements.

  • Carrier is responsible for any and all damage to freight during transit.

  • All pallets must be single stacked.  This means absolutely nothing can be placed on top of the pallets.  No exceptions.

  • The Buyer uses a pallet size of 40" by 48".

  • If 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 for award)

Date

Central

Action

11/14 by

10:00 a.m.

I confirm I meet all terms and Will-Bid Event #3500

11/7 by

10:00 a.m.

Suppliers must be registered with Sorcity (no cost)

11/11 by

10:00 a.m.

All clarifying questions should be entered online

11/15 by

2:00 p.m.

Receive Access Code and place opening bid

11/13 - 11/16 until 

1:00 p.m.

You may place your bids

11/17 by

3:00 p.m.

Buyer will contact low bid suppliers

11/22 by

4:00 p.m.

The 3 Lowest-bid Suppliers will present to the Buyer

11/30 by

4:00 p.m.

Buyer will award to best qualified Supplier

 

SPECIAL NOTES:

  • 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 Line 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 inaccurate. 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 Actual 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 allotted time.

  • By 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.

 

The 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 Tuesday, November 22, 2005, but if extenuating circumstances arise the buyer will reschedule the presentation for Tuesday, November 29, 2005.

 

DEFINITIONS:

For 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.

 

FTL - Full Truck Load - Any shipment of 14 pallets or more

LTL - Less Than Truck Load - Any shipment that consists of 1 to 13 pallets

Fuel Average To Be Used:  $2.876 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 



Online Bid Procedures:

The Seller must honor the Bid Price until July 2007.

Other criteria:

  • You must bid on all items listed in this Reverse-Auction. 

  • Buyer's standard Terms and Conditions apply (These Terms and Conditions will be supplied to the lowest bid suppliers before award is made)

  • Payment terms will require Net 30.  During the on-site presentations, bidders may provide discount payment terms or extended payment terms to assist in making their bid more attractive. 

  • Repeated failure by the awarded Supplier to meet the performance requirements of this agreement will result in this contract being voided by the Buyer.   Major Performance violations are:

    1. Freight damage

    2. Late delivery

    3. Late pick ups

  • PLEASE NOTE:  Any direct contact with the Buyer regarding this opportunity, prior to, during, or after, the Reverse-Auction, until the Buyer contacts you, will cause you to be in violation of the Sorcity.com Member Agreement and be eligible for a fine and disqualification to bid on this opportunity.

  • This data is confidential, may not be used in any manner other than to prepare for this event, and that it may not be transmitted to any third party (defined as anyone not directly associated with preparing the bid for the event or implementation of the agreement for the successful bidder) under any circumstances.


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