OFFICE SUPPLIES Online reverse auction saves Struthers money

Prices, lower than those paid in 2003, are frozen through June 30, 2005.
By MARALINE KUBIK
VINDICATOR STAFF WRITER
STRUTHERS -- Using an online reverse auction, the city recently saved $300 on office supplies and locked in prices lower than those paid in 2003.
Struthers is among the first municipalities in Ohio to use the service.
"We were taken aback by the results of the auction," said Mayor Dan Mamula. "What was supposed to be a test run of how the system works ended up saving the city money."
Best of all, department heads need not change their ordering procedures, Mamula said, and the amount of work required to approve purchase orders and issue checks as payment for supplies will be greatly reduced.
LightGov, a Youngstown-based application service provider for governments, supplied the software for Struthers to conduct the reverse auction, said Danny Thomas Jr., litter/recycling manager and overseer of the city's Web site and online auction.
How it works
Explaining how the reverse auction works, Thomas said all department heads provided lists of supplies their offices used in 2003 -- items such as copy paper and printer cartridges -- along with the best prices paid.
Then, a description of the supplies, quantities used and lowest prices paid were listed on the Web site. The cumulative price of all supplies, based on best prices paid for each item, was listed as the starting point for the auction, Thomas said, and suppliers posted prices that they would charge for the same supplies if guaranteed the city's business.
The supplier with the lowest bid, which was 10 percent lower than the starting point price, was awarded the business, Thomas explained.
All of the suppliers are local. So, he said, delivery won't be a problem and department heads can order supplies on an as-needed basis.
"We don't have to buy everything at once and stockpile it," the mayor clarified.
Prices are frozen through June 30, 2005.
Plans to use it again
The reverse auction worked so well, the city will likely use the program to obtain road repair supplies for next year's crack-sealing and cold-patch programs, Mamula said. "We're trying to save a dime wherever we can."
The city also plans to sell surplus items using the LightGov software. Among the items to be auctioned are a stripped-down police car, used tractor, specialty printers and other office equipment, Mamula said.
LightGov maintains procurement, reverse auction, surplus sales, online payment and other online solutions for clients in Ohio, Wisconsin and Nevada. The company's chief executive officer is local lawyer David Engler, former Mahoning County commissioner and Youngstown city councilman.
For more information, log on to www.cityofstruthers.com.
kubik@vindy.com