Air Force finds savings via auction
- By George I. Seffers
- Aug 09, 2000
In its first test of online auctions, the Air Force saved $88,000 on the
price of computer equipment.
The auctions were held last week, and the results announced Monday.
The service saved about 27 percent off the $325,000 estimated cost for computer
equipment to be used by the Air Combat Command, Langley Air Force Base,
Va. One auction generated more than 35 percent savings from the best available
price on an existing government contract.
The auctions each lasted about 35 minutes. One auction included more
than 40 offers, as five vendors speedily bid against each other for the
The Air Force conducted the auction using an Internet-based application
provided by Frictionless Commerce Inc., Cambridge, Mass., in conjunction
with Moai Inc., San Francisco. The software application was first developed
for the Army.
The Army allowed the Air Force to use the application and provided support
personnel, according to Gloria Cales, an Air Force spokeswoman.
Frictionless and Moai in June announced a partnership to "revolutionize
the U.S. Army's e-procurement process" through the use of the Frictionless
PurchaseSource Unified e-Marketplace, which enables search, selection and
product comparison, and Moai's LiveExchange reverse auction functions.