Large Global Submarine Telecom Company
Large Global Submarine Telecom Company: Energy Procurement
Long term energy procurement client with over 13 years of loyal partnership and documented savings.
One of the largest global submarine telecommunications companies first engaged with Mantis Innovation back in 2010. The local utilities default energy costs were rising steadily, and it was clear that the company needed to take action to reduce their energy spend.
Mantis helped them negotiate better rates, navigate the supply market, and find alternative suppliers, instead of paying the one size fits all rate with the Utility. Over the years Mantis conducted competitive bidding processes, successfully executing 17 contracts.
Most recently they were looking at an 83% increase in their fixed rate compared to their previous contract rate, while they understood that the market had changed dramatically in the past 2 years, it was still hard to stomach. We suggested they look at a hybrid solution, which would spread the purchasing over the course of their three-year contract and allow them to take advantage of various price drops. This also allowed them to lock in all components of the fixed adder, such as renewable portfolio standards, capacity, ancillaries, etc., which have all increased since then. This strategy has already led to just shy of 2.5 million dollars in savings vs the utility in the first six months of the contract.
Additionally, Mantis has helped this company with billing issues, market monitoring, solar feasibility, and has truly been an energy partner for over 13 years.
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Dollars Saved Since 2010
Average Savings Annually
What is a reverse auction?
A reverse auction is a procurement method in which the traditional roles of buyer and seller are reversed, meaning there is only one buyer with many potential vendors.
These types of auctions have been employed by both government entities and the private sector for decades, offering a proven method to enhance the procurement of goods and services. Specifically, energy reverse auctions offer a transparent and competitive marketplace through which businesses and secure new energy contracts. Suppliers offer an identical product but can compete on their willingness to supply it at varying costs.
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Discover more about improving facility performance while reducing costs
How a reverse auction with Procure worked for Lima, OH
The City's in-house Request for Proposal (RFP) process during the mid-2010s was near the $100,000 mark for any single RFP issued. With limited supplier responses and a regulatory mandate to entertain at least three offers, the City was finding it difficult to engage competition and see fair market pricing.
In 2018, however, the City employed a hosted reverse auction for the first time, immediately eliminating half a million dollars in RFP development, administration, and review.
The opportunity to compete for this municipality’s business attracted triple the number of usual respondents, creating an environment for the sharpening of supplier pencils to a degree the City had not seen before. The result was a $390,000 in term savings over their previous contract spend.
In the subsequent years, the City has utilized the reverse auction process to continue to save on RFP costs and reduce their energy spend. With a new contract extension in 2020 for a term from 2023 to 2027, their 10 years of procuring electricity with reverse auctions is on target to have engaged over 30 potential suppliers across three contracts and save the City over $1.6M.
Learn more about how other companies are transforming facility performance
while making progress along their unique journey towards increased sustainability
- Top 5 Industrial REIT - Helped a multinational networking and telecommunications company achieve multi year savings. Read more
- Global Leader in Information and Communications Technology - Helped a multinational networking and telecommunications company achieve multi year savings. Read more
- Large Global Submarine Telecom Company - Long term energy procurement client with over 13 years of loyal partnership and documented savings. Read more