Pittsburgh, PA – Pittsburgh Water is entering a new era – one with renewed emphasis on public health, the environment, and a responsibility to serve as stewards of the vital water services the region relies on each day. They are also committed to transparency and purchasing at a competitive price.

On November 12, 2024, Pittsburgh Water partnered with eBridge Procurement, a leading provider of full-service reverse auctions, to run a pilot reverse auction for the purchase of Sodium Permanganate 20% and Phosphoric Acid water chemicals. In a reverse auction, the roles of the buyer and vendor are reversed, and it replaces the traditional one price per vendor response. Vendors compete in a live, sealed, online auction by placing multiple lowering prices for a buyer’s product or service. Vendors only see their current bid and their rank compared to other vendors. Buyers can then award to the lowest responsible vendor in accordance with the applicable procurement law.

During solicitation development, Pittsburgh Water adjusted the unit of measure from gallons to pounds to open the scope for additional vendor participation. Pittsburgh Water’s competition increased with several new qualifying vendors that had not previously bid on these chemicals. With the addition of new vendors, as well as the reverse auction process, Pittsburgh Water received 245 lowering bids with hundreds of first-place takeovers during the reverse auction. After a little more than an hour of live vendor bidding, the agency saw a final bid price that was a 37.38% reduction from previous pricing.

“We’re very pleased with the increased competition and savings from the reverse auction approach,” said Pittsburgh Water CEO Will Pickering. “This is one of many ways Pittsburgh Water is being mindful of ratepayer dollars and demonstrates our commitment to responsible financial stewardship.” he said.

eBridge’s Regional Director, Ed Barnes, said “As prices increase, reverse auctions are the fastest way to determine if you are purchasing at market value. eBridge’s procurement expertise and proactive methods increase competition and control costs, without sacrificing quality.”