State and local governments can access improved pricing for motor fuel
Two new pools for purchasing motor fuel were announced on Oct. 8, 2007, by Dallas-based Demand Pooling Global Services LLC.
By joining these pools, state and local governments, transportation agencies, military bases and private-sector contractors to governments can combine their demands for fuel to achieve important savings through volume-discount pricing.
Based on the requirements of participating buyers, the motor fuel pool offers more than 450 grades of fuel, ranging from gasoline and diesel to aviation fuel. More than 40 fuel suppliers have indicated they will participate in the auction process.
To participate in the pool, purchasers engage in a secure, online registration process, which enables them to upload or create their Invitation for Bids (IFBs), store and recall frequently used documents and even arrange cost-effective financing or leasing for many products. In addition, customers can specify delivery requirements, and suppliers can bid on the pooled demand.
“We expect good response to this pool based on our preliminary assessment of buyers and the opportunity for buyers to save money for taxpayers,” said Richard K. Aland, Chairman and CEO of Demand Pooling.
According to Aland, for vehicles such as police cars, transit buses or rail cars, fire trucks and other configurable products, Demand Pooling allows each entity to maintain its own specifications.
“When cities, counties or state governments set out to buy vehicles, for example, they sometimes are offered the opportunity to purchase from pre-negotiated existing contracts,” Aland said. “But Demand Pooling enables them to select products on their own terms, and still benefit from the best possible pricing, by buying in the same time window as other local, regional, national and even international buyers.”
As with traditional bid requests, suppliers can submit and buyers can respond to questions, as well as capture submitted bids and award contracts.
Scheduled pools for the remainder of 2007 include motor fuel, water treatment chemicals, police cars and cutaway buses. Subsequent pools will then target service vehicles, transit buses and major spare parts.
The comprehensive Web-based platform of Demand Pooling is provided to buyers at no cost. Buyers are not required to contract with, hire or pay Demand Pooling a fee, subscribe to a service or join a buying cooperative. On request, Demand Pooling provides online and interactive demonstrations of the platform.
Demand Pooling Global Services LLC is a provider of cost-saving procurement, financing, leasing and surplus equipment auction services.
For more information about Demand Pooling or to register for the motor fuel pool, visit http://www.depo.org/.
