The following quick guide applies to the eAuction pilot event being undertaken by the Passenger Transport Unit (PTU) at Leicestershire County Council. It should be read in conjunction with the Rules of Participation document, the large vehicle framework and contract conditions (Framework and Schedule 2).
How will I know which contracts will be tendered in the eAuction? Details of the contracts to be eAuctioned will be published on the Leicestershire County Council website well in advance of the eAuction date. Notification emails will also be sent to eligible operators to inform them that the information is available on the website, it is expected that this information will be available approximately 2 weeks before the eAuction.
How do I register my interest to participate in the eAuction? Registration will only be available to those operators who have been accepted onto the framework agreement. Those operators on the framework that are interested in participating in the eAuction will need to register on the following site
www.Localgovsourcing.co.uk.
What preparation do I need to do before the eAuction? Operators are advised to get the necessary computer equipment, internet connection and Java software before the eAuction.
Once registered, operators are also advised to read the eAuction documents on the LCC eAuction website as well as access the eAuction training provided online by BravoSolution.
Once the contracts to be eAuctioned are published on the website, operators must calculate their costs and prepare the lowest prices that they will be willing to accept for each of the contracts that they are interested in.
What do I need to do on the day of the eAuction? Operators will need to log in on the www. localgovsourcing.co.uk website approximately 10 minutes before the start of the eAuction.
Operators will need to keep the prices that they have calculated close to hand, this is so that when the bidding starts they will know how low their bidding can go for each contract that they are interested in.
Operators must ensure that all of the necessary decision makers in the company are aware of the prices that will be submitted during the eAuction.
How long will the eAuction last? The eAuction will run for an initial 30 minutes, however, if a bid is submitted by any operator in the final 3 minutes on any of the contracts, then the eAuction count-down will start again from 3 minutes for all of the contracts in the eAuction.
As a result of the 3 minute rule, it is not in the interest of operators to submit their bids in the final moments as there is no advantage to be gained, it will simply perpetuate the running time of the eAuction.
How do I submit my bids during the eAuction? The eAuction screen will list all of the contracts available for tendering on the left-hand side of the screen, on the right-hand side of the screen will be a column labelled “Enter bid Value”, operators will need to type in their prices in this box for each of the contracts that they are interested in and press the “Issue / Submit Bid “ button. A confirmation message will appear and operators will then be asked to click ok to confirm their bid.
What prices can I submit? All prices submitted will be for price per day, and all prices that are submitted will need to be less than the base price but should be not less than the minimum price that operators are willing to operate the contracts for. Operators will be able to submit as many bids as they want.
There will be a minimum bid decrement limit of £1 per bid per operator that is placed. This means that if an operator submits a bid of £120 per day, then if that same operator decides to bid again for that same contract their next bid must be £119 per day or less, regardless of competitor bids or the lowest current bid for that contract.
Operators are also advised that they do not have to submit whole number decrements, they may choose to bid in decrements greater than £1, for example £1.01, £1.05 or £1.37. Using the £120 example above, operators may submit bids such as £118.99 or £118.57 providing that these bids are at least £1 less than any previous bids they may have made on that contract. Adopting this strategic approach may help operators to win contracts.
Operators are advised to submit their lowest price for each contract that they are interested in even if that is not the lowest price that has been submitted.
What if I have any queries / IT problems during the eAuction? Operators will need to contact the BravoSolution help desk on 0800 368 4850 (free-phone).
How many contracts can I submit tenders for? – Operators are advised to only submit bids for the number of contracts that they can realistically operate. Remember that all bids that are submitted are legally binding - if you win more contracts than you can operate there will be financial penalties.
What penalties will I face if I am unable to operate the contract(s) that I am awarded? If an operator is unable to continue operating their contract, then they will need to provide 2 months’ notice. If they need to cease operation with immediate effect then they will have to cover any additional costs of emergency cover that will be arranged by the PTU.
If an operator decides to terminate their contract prior to the start of the contract, then the 2 months notice will take effect from the start of the contract (not from the notification date of the termination), this will mean that operators will be liable to cover the additional costs of 2 months’ operation regardless of when the termination notice is served. IMPORTANT - Please note that this clause is specific to eAuctions and is in addition to the standard termination clause in Schedule 2.
The PTU will seek to recover any additional costs incurred in lieu of notice as a result of immediate termination or termination of a Contract without appropriate notice. The authority also reserves the right to exclude operators from future tenders for failure to operate contracts that they win during this or any future eAuction.
Tips and Important Notes to Remember
Prepare prices for contracts prior to the start of the eAuction
Do not tender for more contracts than you can operate
Do not submit bids lower than the price that you can operate the contract for
Do not get “carried away” with the bidding - know your minimum price for each contract
Remember that all bids submitted are legally binding
Always submit your best bid even if it is not going to win the eAuction
You do not need to submit bids in whole numbers, prices such as £110.54 or £99.79 are acceptable
Do not leave your bidding to the last few minutes
Operators will not be able to negotiate prices following the eAuction
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