Electronic Bid Distribution - Coming Soon

What is it? Bid distribution companies have been organized to assist governmental entities in administration of formal competitive bids. These organizations provide benefits to governmental entities by saving administrative costs and by enhancing the competition achieved by the bid. The cost is some times free to the governmental entity. Vendors may pay a nominal fee in order to receive electronic notification of bids. The service provides bid documents to vendors electronically or through traditional means.

Advantages? Use of electronic notification and distribution eliminates administrative costs for distribution of bids, including staff time, cost of reproduction of bid specifications, and postage expenses. Entities who are using such services report an increased response by vendors as a result of the electronic notification. Vendors who choose to participate in this method of bidding may find that it saves time spent to find bid postings and legal notices.

Although local governments already practice open and competitive bidding, extending its reach through new bid information channels cannot help but have a positive impact on the bottom line and drive costs down without spending a dime.

What purchasing situations would lend itself to electronic bid distribution? Formal bids and informal quotes may be distributed through an organization, which specializes in distribution for governmental entities. When quotes are needed quickly, electronic distribution offers the fastest method of reaching a variety of vendors who have specifically indicated an interest in a short period of time. Formal bids, which my often include many pages of detail and possible blueprints or other technical information, may be distributed by e-mailing or faxing the specifications to the distributing entity.