Air Force reaps savings
- By George I. Seffers
- Aug 14, 2000
The Air Force announced last week that it saved $88,000 by using online
reverse auctions to buy computer equipment.
Through the auctions, held earlier this month, the service shaved 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 a more than 35 percent savings from the best available price on
an existing government contract.
Each auction lasted about 35 minutes. One auction included more than
40 offers, as five vendors speedily bid against one another for the lowest
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 Commerce and Moai announced a partnership in June to "revolutionize
the U.S. Army's e-procurement process" via the use of Frictionless Commerce's
Purchase-Source — a suite of products that enables search, selection and
product comparison — and Moai's Live-Exchange reverse auction functions.