Agency Bids Contract for Recovery Sequencers Worth More Than $2.3 Million;
Identifies Estimated Savings of 28.9 Percent
PITTSBURGH, May 9 /PRNewswire/ -- On Friday, May 5, the Naval Supply
Systems Command (NAVSUP) conducted a reverse auction through
FreeMarkets, Inc. (Nasdaq: FMKT), the original and world's leading B2B
eMarketplace.
During the auction, the Naval Inventory Control Point (NAVICP), NAVSUP's
largest field activity whose primary mission is to procure, manage, and supply
spare parts for U.S. and foreign aircraft, submarines and ships worldwide,
received offers via the Internet from three potential suppliers for components
of ejection seats in the B-1, F-15, F-16, and F-117 aircraft. The components
bid were recovery sequencers, which are the "brains" of the Advanced Concept
Ejection Seat.
Reverse auctions conducted through the FreeMarkets B2B eMarketplace employ
secure, Internet-based technology to allow suppliers to compete online in
real-time for contracts by lowering their prices as they see other offers. In
this instance, the Navy estimates that it achieved savings of 28.9 percent
over the historical price for the recovery sequencers bid.
The auction lasted 51 minutes, and the contract was awarded to Hi-Shear
Technology Corporation of Torrance, Ca. within an hour of the reverse auction
closing. The contract is for 756 recovery sequencers valued at
$2.375 million. In contrast, standard procurement contracts are awarded on
the basis of written sealed bids or competitive proposals, which can take
weeks.
"Friday's market shows the viability of online auctions for a wide range
of goods and services purchased by the Department of Defense and other federal
agencies," said Dave McCormick, vice president for public sector business at
FreeMarkets. "The Navy is innovative in its approach to procurement, and we
look forward to helping the agency deliver results that can benefit its
customers and the nation's taxpayers."
About NAVSUP
NAVSUP's primary mission is to provide U.S. naval forces with quality
supplies and services. With headquarters in Mechanicsburg, Pa., and employing
a worldwide work force of more than 9,000 military and civilian personnel,
NAVSUP oversees logistics programs in the areas of supply operations,
conventional ordnance, contracting, resale, fuel, transportation, and security
assistance.
In addition, NAVSUP is responsible for quality of life issues for our
naval forces, including food service, postal services, Navy Exchanges, and
movement of household goods.
About FreeMarkets
FreeMarkets is the original and world's leading B2B eMarketplace, with
online markets for industrial parts, raw materials, commodities and services.
The Company has executed online auctions for over $5.4 billion of purchase
orders to date, and created potential estimated savings of more than
$1 billion for its customers. Since 1995, FreeMarkets has created online
auctions for products in more than 100 supply verticals, including injection
molded plastic parts, commercial machinings, metal fabrications, chemicals,
printed circuit boards, corrugated packaging and coal. More than 4,000
suppliers from over 50 countries have participated in the FreeMarkets B2B
eMarketplace. FreeMarkets is the only B2B eMarketplace that includes
industry-leading online auction technology, technical operations, industrial
market making services, access to a global database of suppliers and supplier
research, call center support to buyers and suppliers in over 30 languages,
and marketplace rules. Through an alliance with American Management Systems,
Inc., FreeMarkets delivers best-of-breed online auction and market making
solutions that enable public sector procurement professionals to make market-
based buying decisions for commodities and services. FreeMarkets' current
customers include Visteon Corporation, United Technologies Corporation, The
Quaker Oats Company, Owens Corning, Eaton Corporation, Emerson Electric
Company, FirstEnergy Corp., SmithKline Beecham plc, Navistar International and
Delphi Automotive Systems Corporation. FreeMarkets can be found on the Web at
http://www.freemarkets.com. FreeMarkets is a registered trademark of FreeMarkets,
Inc.
Forward-looking statements
Statements in this press release that are not historical facts, including
those statements that refer to FreeMarkets' plans, prospects, expectations,
strategies, intentions, hopes and beliefs, are forward-looking statements.
These forward-looking statements are based on information available to
FreeMarkets today, and FreeMarkets assumes no obligation to update these
statements as circumstances change. There are risks and uncertainties that
could cause actual results to differ materially from the forward-looking
statements, including, without limitation, market acceptance of FreeMarkets'
online auction marketplace, the competitive nature of the market for business-
to-business online auction services, FreeMarkets' ability to retain and
increase revenue from existing clients and to attract new clients,
FreeMarkets' ability to attract and retain qualified personnel, the size of
the market for used equipment and surplus inventory, the demand for online
auction and other asset recovery services by buyers and suppliers, and
FreeMarkets' ability to integrate acquisitions. Risk factors are described in
more detail in FreeMarkets' filings with the Securities and Exchange
Commission.
For more information, contact Karen Kovatch of FreeMarkets, 412-297-8767,
or kkovatch@freemarkets.com.
SOURCE FreeMarkets, Inc.
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Related links:
http://www.freemarkets.com
CONTACT:
Karen Kovatch of FreeMarkets, 412-297-8767,
or kkovatch@freemarkets.com
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