HACKETTSTOWN, N.J., June 15, 2001 (PRIMEZONE) -- TerraMotus.com Corporation, a leading provider of dynamic pricing procurement services on the Internet, today announced that it has conducted a successful auction for turnkey environmental remediation services at a Super Fund site on behalf of Honeywell Inc. (NYSE:HON) (Honeywell) utilizing its TerraWare proprietary platform.
During the event, seven contractors competed for a projected $2.8 million contract to provide environmental construction services to cap a landfill at a Superfund site. The construction project included the regrading and capping of more than 2,000 truckloads of soil.
The online bidding process increased competition for the environmental construction contract and reduced Honeywell's negotiating time, with more than 130 bids received in approximately 70 minutes, with four automatic auction extensions due to a late flurry of bid activity near the scheduled auction close. When the bidding ended, the low bid received was approximately 2.1 million; the auction yielded Honeywell an estimated 25% cost savings. In addition, the difference between the final bids entered by the remaining active Suppliers at the conclusion of the auction was 1.5%, even though the Suppliers could not see their competitor's bids, just their overall "rank."
"Honeywell and our firm were both extremely pleased with the Supplier participation and overall auction results," commented Donald E. Howell, Vice President, TerraMotus(SM). "In addition, the extremely small differential between the low bids shows the auction achieved a true market price," stated Howell.
"We have successfully completed several auctions for the environmental industry, and we are consistently achieving savings in the 10-25% percent range. Our firm is currently working with our other clients to identify potential purchase aggregation opportunities, which will yield even greater cost saving for all the participating buyers," Howell concluded.
About TerraMotus(SM)
TerraMotus(SM) is a leading provider of dynamic pricing procurement solutions. TerraMotus(SM) combines its proprietary TerraWare platform with superior sourcing information and supreme customer service to deliver significant savings to clients. TerraMotus(SM) has conducted more than 100 online auctions for more than $300 million worth of goods and services to date, resulting in savings in excess of $30 million for its clients. TerraMotus(SM) maintains approximately $1.5 billion in backlogged auctions, conducted for U.S.-based clients ranging from Fortune 100 firms to mid-sized manufacturing companies and commercial property developers.
Inquiries regarding TerraMotus(SM) services can be directed to Howell at (908) 850-9030 at extension 201 or via email at dhowell@terramotus.com; additional information is available through the firm's Website at www.terramotus.com.
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CONTACT: TerraMotus
Donald E. Howell
(908) 850-9030, ext. 201
dhowell@terramotus.com