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

Allison,Cummins hybrid-electric system recieves CARB certification

Allows sales of model year 2015 Allison H 40/50 EP™ hybrid propulsion system paired with the Cummins ISB6.7 and ISL9 diesel-electric hybrid engines for transit buses and coaches.

N.Y. MTA expands courtesy ads to bus system

The campaign is similar to the one developed for subways, with the focus on reminding passengers that avoiding certain behaviors can ensure a faster and more pleasant ride for everyone. Reminders include step aside to let others off first; remove your backpack; and don’t clip your nails on the bus.

Bridj to launch D.C. service

While Founder Matt George is interested in connecting Capitol Hill, K Street and Dupont Circle, it’s not yet clear if those will be the neighborhoods Bridj starts with. The start-up is encouraging interested customers to request specific routes on its website

New Flyer wins N.Y. CNG bus contract

The contract for 110 XN40 buses contains a firm order for 52 buses with options for an additional 58 buses and is valued at approximately $53 million dollars.

CCW to provide Iowa with rebuilt artics

Des Moines Area Regional Transit's 60-foot low floor articulated buses will replace high-floor buses and include newly installed ramps, remanufactured power trains, transmissions, engines and brakes. It will also be equipped with two ADA compliant wheelchair lifts.

See More News

Post a Comment

Post Comment

Comments (0)

Please sign in or register to .    Close