Bus

CTA approves new procurement process

Posted on June 9, 2011

The Chicago Transit Board approved an ordinance permitting the Chicago Transit Authority (CTA) to use online reverse auctioning as a competitive procurement process to purchase goods and services.

Online reverse auction procurement is a real-time bidding process that encourages competitive bid pricing by having pre-approved vendors submit lower prices to outbid other competitors within a set auction timeframe.

The CTA currently uses a variety of competitive processes to procure goods and services including invitation for bid and request for proposals. Currently, invitations to bid require vendors to submit price proposals as part of the bid package.

In the reverse auction bid process, vendors submit all other requirements of the bid package except for the price. The price is finalized during the auction where vendors have allotted time to under bid each other in order to secure contracts.

"Rather than CTA selecting the lowest bid from submitted responses, the reverse auction process creates an environment where a vendor can submit another bid to counter those under discussion. This can help yield lower prices on goods and services than those submitted through current procurement processes," said CTA President Forrest Claypool. "In this economy, we have to explore every option to save money."

On July 1, 2010, the state of Illinois enacted the Local Government Electronic Reverse Auction Act (50 ILCS 531/1, et seq.), which allows local government agencies to engage in reverse auctions if it is in the best interest of the agency to do so. As part of this statute, the CTA is unable to procure certain services through reverse auctions, including professional, artistic, telecommunication, communication, information and construction.

View comments or post a comment on this story. (0 Comments)

More News

Chinese company unveils 'Transit Elevated Bus'

The bus is supported by two legs that run along rails laid along the roadside. The legs allow the buses frame to glide high above the gridlock at speeds of up to approximately 37 miles per hour.

Last Chance for Innovative Solutions Award submissions

Have you recently partnered with a solutions provider within the last year to implement a new innovation at your operation that has helped you save money, run more efficiently, streamline operations, improved customer satisfaction or increased ridership? Tell us what you did and how it has positively impacted your business.

NY MTA introduces the first of more than 2,000 state-of-the-art buses

After more than three decades of bearing more than a passing resemblance to refrigerators on wheels, the appearance of North America’s largest transit bus fleet is undergoing a stunning transformation

NY MTA rolls out first of 75 state-of-the-art New Flyer buses

In March, Gov. Cuomo announced the addition of 2,042 buses, equipped with Wi-Fi and USB charging ports, to the MTA fleet over the next five years, replacing 40% of the current fleet.

Dallas' DART takes top spot at APTA's International Bus Roadeo

The Grand Champion Award recognizes the system with the highest combined bus operator and maintenance team score.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close