Public Sector Procurement Price Benchmarking and Market Basket Analysis Tool
Each year, federal, state, local, and educational (SLED) institutions spend billions of dollars on commercial catalog items (e.g. office, JanSan, and medical supplies, MRO, IT, Automotive and electrical parts, etc.). Public sector buyers purchase these items directly from manufacturers, from distributors, and increasingly from e-marketplaces. Buyers are mandated to verify that prices paid are “fair and reasonable”, but with thousands of contract actions each year, this is a daunting task.
Price Point is a powerful, subscription-based price benchmarking and market basket analysis tool. Price Point joins proprietary, commercial and open data to help buyers make “fair and reasonable” price determinations for commercial items, comply with acquisition mandates, and drive savings. Price Point can help you quickly understand:
- Is this a “fair and reasonable” price for this item? If not, what is the “right” price?
- Is this item available under an existing contract vehicle?
- Who is the lowest priced supplier?
- Is it available from a preferred vendor?
- Does the item comply with other procurement mandates?
- Green, AbilityOne, Socio-economic, etc.
- What should I expect to pay for this market basket?
Actionable reports facilitate negotiation with suppliers and are useful for contract file documentation. These reports rank items in terms of price risk, flagging prices which are determined to be too expensive in comparison to competitor prices for identical items.
Price Point in Action
Price Point has been successfully used by the largest contracting organizations in the US government to:
- Drive savings
- Reduce lead times
- Improve productivity
- Comply with Strategic Sourcing initiatives and other procurement regulations
- Ensure acquisition decisions are made accurately and consistently across the agency
See the Benefits for Yourself
Benchmark your supplier pricing against a database of tens-of-millions of federal, state, local, and educational (SLED), and open-market prices. You may identify areas where you can use this fact-based analysis to negotiate better prices or simply gather data to demonstrate the competitiveness of your contracts.
Optimize pricing for virtually all your catalog spend. With the use of automated analysis, there is no longer a reason to source catalog-based categories using “market baskets” which represent a limited percentage of spend in a given category. Now, you can establish target prices and analyze offers received for millions of commercial items automatically.
Addressing Other Procurement Challenges
Beyond price, quickly address other procurement challenges, such as ensuring compliance with environmental and regulatory statutes or identifying suppliers who meet specific socio-economic criteria to help achieve your organization’s sourcing goals.
Price Point’s AI engine automates these tasks, so you can concentrate manpower and resources on more strategic or complex procurement activities.
Using Data Science to Drive Savings
Traditional methods of evaluating prices are simply not scalable. Horizontal Price Analysis is the process of comparing the price of identical items across various distributors, resellers and manufacturers, even when the item is described differently. This requires an advanced AI and logic engine. Horizontal price analysis is a critical need in public sector procurement where numerous contracts are issued for the same item from multiple vendors. It is also central to the truly effective use of an e-marketplace.