One of the world’s largest food built a massive new facility in Jonesboro, and Razorback Concrete Company was there to help lay a solid foundation.
Nestle USA, part of a $45 billion world-wide company, constructed a new frozen food factory in Jonesboro to produce Stouffer’s, Lean Cuisine and Ortega brand foods. The project also included a new warehouse that will be run by a third-party company. The Stellar Group of Jacksonville, FL was the general contractor.
The project was not only exciting because of its size – an estimated 18,000 cubic yards of concrete will be required – but also because of the bidding process that took place to award the contract. It was Razorback Concrete’s first foray into “on line” bidding, an effort that ultimately proved to be successful.
Razorback Concrete’s general manager, Keith Wetsell, spearheaded the effort to obtain the ready-mix contract, but he had mixed feelings about the electronic bidding format after it was all over.
The process worked and it’s probably the wave of the future, but it may not necessarily be the best way to conduct business in our industry.
Wetsell noted that the focus of the on-line bidding procedure was strictly on lowest cost and did not take into account the quality of the product or the expertise of the companies involved.
All ready-mix products are not alike. There can be a great deal of difference in quality and uniformity. Our company has invested in the very best production and delivery equipment and we offer quite a lot of professional experience and outstanding service. These are things that may not be evident when you’re looking only at a bottom-line cost.
Three companies were involved in the on-line bidding process. It was conducted much like a reverse auction, with each company responding to the others’ low bid. Each company was given three minutes to respond to bids as they were made and the entire on-line bid process was limited to about one-half hour
A target low bid was established by Nestle before the bidding process began. If the target price was not achieved, the company reserved the right to award the work to any of the three bidders based on Nestle’s own criteria. As it turned out, the target price was not met by any of the three bidders and Nestle chose Razorback Concrete for the project.
We were extremely pleased that they selected us,” said Wetsell. “Nestle is one of the biggest companies in the world and The Stellar Group is a very well-respected company as well.