Here at The Reverse Auction Research Center (http://ping.fm/isgIc), we're constantly looking for innovative applications of reverse auctions. We are particularly focused on how the auction model can be put to use at all levels of government to save taxpayer dollars and create more efficient and transparent acquisition processes for all forms of goods and services.
Thus, we were very interested in this story, coming from Jennings County, Indiana, which details how the county's school district will be using a reverse auction process - a live one, no less - to determine the amount it will pay to contracted bus drivers for their routes - and to determine who would drive the routes at the lowest possible rate. You can read the full story - from the North Vernon (Indiana) Plain Dealer - below:
Reverse auction on bus routes
As John Howard, who is the Jennings County School Corporation's point person in charge of charge of buildings, grounds and transportation put it quite simply: "I'm going to get these drivers together and let them decide how much they will need to drive the route. We'll start at the lowest proposal and keep going down until only one person remains."
When asked what this will mean for taxpayers, Howard believes that the reverse auction process will produce significant savings. He observed that: "It is certainly a good thing for the taxpayers," Howard agreed. "We are starting at the lowest price proposal and will be working our way down from there."
We'll keep you informed as to the outcome of the process, but we must give a hearty "thumbs up" to Mr. Howard and the Jennings County School Corporation for this innovative use of reverse auctioning to allocate bus routes! Other school districts around the country should think about following their lead to save on this type of service - and many others - at this time of extreme budgetary pressures for all.
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