USING a reverse e-auction, the National Gas Company of TT Ltd (NGC) helped the Ministry of Education (MoE) save millions on the purchase of 8,000 laptops for schoolchildren.
In a release on Monday, NGC said it collaborated with the National Information and Communication Technology Co Ltd (iGovTT) to assist the ministry to save millions in a recent laptop procurement exercise.
The company said it began using e-auctions to procure goods in May 2019. It said the process involves competitive bidding where participants compete on a digital platform and outdo competitors in the pricing offered.
Reverse auction in this case is used to purchase items where the lowest bid wins compared to forward auctions where the highest bid wins.
NGC said it has been using reverse auctioning to allow suppliers to present bids on certain project scopes or tenders, for the opportunity to supply the requested good or service.
It said, “Having saved millions of dollars relative to in-house estimates since its first e-auction, NGC has recognised the value of the e-auction procurement methodology and has contemplated extending the availability of its e-auction platform to other state entities to generate savings and help streamline public procurement practices.”
NGC said it approached iGovTT to demonstrate the use of e-auctions in a public procurement exercise for the Education Ministry. iGovTT was helping the Education Ministry with the purchase of 8,000 laptops for students in TT.
On March 3, NGC hosted an e-auction event on behalf of iGovTT and the ministry where representatives were able to see how the e-auction platform functions and potential applications of the system for future procurement activities.
It said, “Not only did the reverse auction result in significant savings to the MoE and the public purse, but representatives left with valuable insights on the e-auction process and platform that can be replicated at the MoE and other ministries.”
NGC president Mark Loquan explained, “We at NGC see ourselves in a position to leverage technologies utilised at NGC for the use and benefit by other state entities. This includes not only e-auctions but also the adoption of satellite services. We are continuously seeking opportunities to cut new paths, to help TT achieve its development goals. But just as a rising tide lifts all boats, we believe the impact of our innovations and learnings can be multiplied if shared with other companies, particularly in the state enterprise sector, which faces similar challenges. If we can collaborate with other state companies and ministries to help them work more efficiently and cost-effectively, then all of TT wins.”
Kurt Scotland, NGC’s senior manager, supply chain management, who initiated and spearheaded this collaboration said, “One of NGC’s strategic growth pillars aims to strengthen the company’s national contribution, and this exercise is a prime example of NGC actively helping our compatriot companies grow. E-auctioning halved the MoE’s procurement cost in this instance, and w
