WO2001055816A2

WO2001055816A2 - Automated system and process for acquisition of goods and services through categorized solicitations and restricted proposal responses

Info

Publication number: WO2001055816A2
Application number: PCT/US2001/002446
Authority: WO
Inventors: Douglas Brian Morris; David Francis Keighley
Original assignee: Onlinesuppliers.Com Corp.
Priority date: 2000-01-27
Filing date: 2001-01-26
Publication date: 2001-08-02
Also published as: WO2001055816A3; AU2001232963A1

Abstract

An automated system and process are provided for acquisition of goods and services through categorized solicitations and restricted proposal responses over a general purpose computer network such as the Internet. The system includes a catalog database, a solicited electronic quotations (SEQ) application and database, and an Interactive Past Performance Reporting (IPPR) application and database. The method comprises the steps of: permitting a first entity to access a solicited electronic quotation application and database with a password; uploading a solicitation from the first entity to the solicited electronic quotation application and database; providing the first entity with access to a past performance database, the past performance database including information regarding past performance characteristics of each of a plurality of participating entities, to assist in selection of a limited group of participating entities from among the plurality of participating entities; allowing the first entity to specify a set of parameters of performance characteristics in order to select the limited group of participating entities from the plurality of participating entities to receive a solicitation; notifying the selected limited group of participating entities of the solicitation; allowing the selected limited group of participating entities to access the solicited electronic quotation application; and receiving and forwarding responses to the solicitation received from the selected limited group of participating entities to the first entity.

Description

AUTOMATED SYSTEM AND PROCESS FOR ACQUISITION

OF GOODS AND SERVICES THROUGH CATEGORIZED SOLICITATIONS

AND RESTRICTED PROPOSAL RESPONSES

BACKGROUND OF THE INVENTION

Information technology now allows prospective customers to review information about available products and/or services and procure them from suppliers on a real-time, cost-effective and more competitive basis than traditional paper and telephone-based acquisition processes. The sale and purchase of products and services via automated processes utilizing information technologies is sometimes referred to as "electronic commerce."

Over recent years, many merchants/service providers seeking to take advantage of the potential efficiencies of electronic commerce now sell their products and/or services over the Internet in an effort to capitalize on the increased prospective buyer access that the Internet provides. Many such merchants/service providers provide a listing or catalog of their available products and services and additional information about such products and/or services such as price, model number, color, etc. on a World Wide Web site for easy access for prospective customers. Prospective customers can use this information to make informed decisions about whether to purchase the products and/or services being offered via the web site.

Notwithstanding this rush to the Internet by the business community, commercial use of the Internet has not met the anticipated potential for a number of reasons. Often, it is comfortable for consumers to select a known merchant/sen/ice provider in the community, rather than to take a chance on an entity found on the Internet with a lesser established reputation or where there is insufficient information concerning a merchant's/service provider's past performance history. Some additional reasons include the perceived lack of security and the lack of user-friendly transaction methods, many of which are not as efficient as desired. Because of security concerns, prior electronic procurement systems have been limited to a prospective customer accessing a single merchant/sen/ice provider web site at a time to ensure the integrity of a secure purchase session. The necessity of completing independent purchase transactions with a plurality of merchants/service providers, particularly where items desired by a prospective customer are subject to comparative selection, presents a significant barrier to the prospective customer's ability to conveniently and efficiently select and purchase products and/or services online.

Another problem encountered with electronic procurement systems has been the inability to develop a system which enables all users of the system, customers and merchants and others, to access and use the procurement system without the need to purchase additional hardware and/or software for compatibility requirements with the procurement system. Many prospective users of such procurement systems have already made substantial investments in their computer systems. Different prospective users' computer systems frequently use different operating systems and different data formats and, thus, prospective users of an electronic procurement system may experience compatibility problems which hamper their use of such procurement systems.

Yet another deficiency inherent in prior electronic product/service procurement systems is the inability of the parties to a transaction to negotiate the terms and conditions of a particular transaction on a real-time basis online. The prior systems required the customer to either agree to standard predetermined terms and conditions of a merchant for purchase of the merchant's products/services or refrain from making the desired purchase.

Accordingly, there exists a need for an automated system and process for acquisition of goods and services through categorized solicitations and restricted proposal responses which provides sufficient performance and other information about participating merchants/service providers, which is user-friendly, efficient and which provides for secure transaction processing. Additionally, the need exists for such system to allow customers to perform comparison shopping among products or services being offered by multiple different merchants/service providers for procurement of a desired product or service from among those compared which best fulfills the customer's needs. Furthermore, there is a need for such a system to be designed such that there is no requirement that a user of such system make a significant investment in additional hardware or software in order to use such procurement system. Moreover, there is a need for an automated procurement system to allow parties to a particular transaction to negotiate the terms and conditions for such a transaction on a real-time basis online.

SUMMARY OF THE INVENTION

It is, accordingly, an object of the present invention to provide an automated system and process for acquisition of goods and services through categorized solicitations and restricted proposal responses which is easy to use, which enables customers to procure needed products and services in an efficient and cost-effective manner and which provides for secure transaction processing.

It is an additional object of the present invention to provide a real-time system and method for processing automated solicitations and providing responses based upon the parties' prior negotiation and acceptance of a standard set of terms and conditions, wherein the negotiated terms and conditions become components of a unique identifier.

It is an additional object of the present invention to provide an automated system for categorized solicitations and restricted proposal responses which allows a customer to perform comparison shopping among products or services being offered by multiple merchants/service providers before purchasing a desired product or service from among those compared which best fulfills the customer's needs. It is a further object of the present invention to provide an automated system and process for acquisition of goods and services through categorized solicitations and restricted proposal responses which does not require that a user of such system and method purchase additional hardware or software in order to make use of such system and method.

Yet another object of the present invention is to provide an automated system for acquisition of goods and services through categorized solicitations and restricted proposal responses which enables parties to a particular transaction to negotiate the terms and conditions for such transaction online on a real-time basis.

Additional objects and advantages of the invention will be set forth in the description which follows or may be learned by practice of the invention.

To achieve the foregoing objects, and in accordance with the purposes of the invention as embodied and broadly described herein, there is provided an automated system for acquisition of goods and services through categorized solicitations and restricted proposal responses over a general purpose computer network. The system comprises host server means connected to said general purpose computer network for transmitting information to and receiving information from a plurality of participating entities. A database server means, connected to said host server means, transmits information to and receives information from said host server means. The database server means comprises a past performance database for storing information regarding performance characteristics of participating entities and a catalog database for storing product and services information of participating entities. The database server means also comprises a solicited electronic quotations application and database for facilitating entry of a request for products and services. The solicited electronic quotations application and database comprises a search engine for collecting information from the past performance database and the catalog database upon receipt of a solicitation; and matching means for comparing performance characteristics stored in the past performance database of each of a plurality of participating entities responding to another participating entity's solicitation for products and/or services to predetermined performance characteristics established by the another participating entity in the solicitation.

In another aspect of the invention, a method for selectively prompting proposals in response to a solicitation is provided. The method comprises the steps of: a) creating an identifier for each one of a plurality of participating entities, the identifier comprising multiple components; b) storing the multiple components of the identifier for each one of the plurality of participating entities in a past performance database and a catalog database; c) uploading a solicitation from a first entity to a solicited electronic quotation application and database, said solicitation including an identifier for selection; d) comparing the identifiers stored in the past performance database for each one of the plurality of entities to the identifier of the first entity included in the solicitation; e) selecting a limited group of entities having identifiers that match with the identifier of the first entity included in the solicitation; and f) providing the first entity with the selected limited group of entities and their identifiers.

In yet another aspect of the invention, a method is provided for selectively prompting proposals in response to a solicitation. The method comprises the steps of: a) permitting a first entity to access a solicited electronic quotation application and database with a password; b) uploading a solicitation from the first entity to the solicited electronic quotation application and database; c) providing the first entity with access to a past performance database, said past performance database including information regarding past performance characteristics of each of a plurality of participating entities, to assist in selection of a limited group of participating entities from among the plurality of participating entities; d) allowing the first entity to specify a set of parameters of performance characteristics in order to select said limited group of participating entities from the plurality of participating entities to receive a solicitation; e) notifying the selected limited group of participating entities of the solicitation; f) allowing the selected limited group of participating entities to access the solicited electronic quotation application and database; and g) receiving and forwarding responses to the solicitation received from the selected limited group of participating entities to the first entity.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 A is a block diagram illustrating a general configuration of the system of the invention;

FIG. 1B is a block diagram illustrating a preferred embodiment of the system in which prime-contractors solicit responsive bids, proposals, or information from subcontractors;

FIG. 2A is a block diagram illustrating a catalog database of the embodiment of FIG. 1B;

FIG. 2B is a block diagram illustrating a Solicited Electronic Quotation (SEQ) application and database in a first preferred embodiment of the invention;

FIG. 2C is a block diagram illustrating an Interactive Past Performance

Reporting (IPPR) application and database of the first preferred embodiment of the invention;

FIG. 3A is a block diagram illustrating an SEQ application and database of a second preferred embodiment of the invention;

FIG. 3B is a block diagram illustrating an IPPR application and database of a second preferred embodiment of the invention;

FIG. 4A is a flow chart illustrating the steps involved in a first preferred embodiment of a method for selectively prompting proposals in response to a solicitation; FIGS. 5A-5F are flow charts illustrating the steps involved in a second preferred embodiment of the method for selectively prompting proposals in response to a solicitation; and

FIGS. 6-44 are exemplary screen displays shown when the user accesses the catalog database in the embodiment of FIG. 1 A.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Reference will now be made in detail to the present preferred embodiment of the invention, examples of which are illustrated in the accompanying drawings in which like reference characters refer to corresponding elements.

FIG. 1 A illustrates a system for acquisition of goods and services through categorized solicitations and restricted proposal responses. FIG. 1A also illustrates an automated system for the selection and procurement of products and services by one of a plurality of customers from one or more of a plurality of merchants/service providers over a general purpose computer network in accordance with the present invention.

As shown in FIG. 1A, the system 100 makes use of a client/server system architecture to conduct transfer protocol connections between client and host server computer systems. System 100 is designed for use by a plurality of classes of potential users including a plurality of potential and actual customers 10, a plurality of merchants/service providers 20, a plurality of manufacturers 30, and a plurality of distributors 40. The general purpose computer network 5 may be the Internet or another suitable general purpose computer network.

In order for the system 100 to support many hundreds of prospective users while maintaining a balance on the load on the system 100, system 100 includes a scaleable system architecture 55 comprised of a plurality of clustered multi-server groups and multi-path network layer systems, such as distributed IBM Netfinity 7000 multi-process (network and database) servers. The IBM Netfinity 7000 servers are designed to support approximately 20,000 hits (or unencrypted page queries) per hour and 2000 secure socket layer (SSL) encrypted hits per hour. The system 100 networking infrastructure uses Wide Area Network (WAN) Access switches, such as the cell/packet switches offered by 3Com and CoreBuilder or other similar switches that have the capability to support voice, data and video transmission in encrypted and unencrypted formats.

System 100 further includes system management and maintenance facilities 95. The facilities 95 include network and application monitoring systems and support staff. The functions of facilities 95 include, for example, virus detection, eradication, removal and/or quarantine to filter all input to and output from system 100 to prevent viruses from infecting system 100.

The plurality of potential users may each gain access to the system 100 via a computer having a connection to the Internet 5 through an Internet access provider and by using a traditional Internet browser application such as Netscape's Navigator™ or Microsoft's Internet Explorer™ that supports the hypertext transfer protocol (HTTP). In order to gain access to system 100, a user merely inputs the Universal Resource Locator (URL) address for the system 100 web site through the Internet 5 to a host server of system 100. The system 100 makes use of various security features 50 such as Virtual Private Networks (VPNs) among the user base, various firewalls to prevent unauthorized access and Internet-based security protocols such as secure socket layers (SSL). The security features 50 require that a user clear various levels of logins and passwords prior to gaining access to the system 100.

System 100 further includes a virtual mall 60 with a storefront for each of a plurality of merchants/service providers 20. The automated method used in the present invention begins with the transmission of information about a plurality of products and/or services offered for sale by each one of the plurality of merchants/service providers 20 via a merchant server to a database server over the Internet 5. The database server 65 includes a product/sen/ice catalog database 70 for storing product/service catalog information transmitted by each of the plurality of merchants/service providers 20 concerning various products and/or services being offered for sale by each of the merchants/service providers 20. Each merchant/service provider 20 may upload its own product/service catalog to the database server. In this manner, each individual merchant/service provider 20 need not maintain its own product/service database on its own client server system, thereby freeing up much needed memory and bandwidth on the merchant's/service provider's server for other applications. Once the product/sen/ice catalog database 70 is initially populated, each individual merchant/service provider 20 need only send periodic updates to the system 100 database server. Each individual merchant/service provider 20 may be relieved from the time and resources it would otherwise utilize to maintain its own product/service catalog database.

The system 100 product/service catalog database 70 can be maintained and powered by use of the IBM Net.Commerce Pro application, or similar database engine which can support at least 150 separate merchant/service provider 20 storefronts. The system 100 product/service catalog database 70 is compatible with the UNIX, IBM OS/390, IBM OS/400 and Windows NT mainframe operating systems.

Once each merchant/sen/ice provider 20 transmits its own product/service catalog (a merchant/service provider 20 subcatalog) information to the system 100 database server, the system 100 administrator configures the merchant/service provider 20 subcatalog for input into the unitary product/service catalog database 70. The transmitted information for the plurality of products/services for each of the plurality of merchants/service providers 20 is organized in a hierarchical categorization in the catalog database 70 based upon a predefined set of categories such that the transmitted information for the plurality of products/services is organized in the catalog database 70 in a similar manner for each of the plurality of merchants/service providers 20. To do this, the catalog database 70 makes use of a fixed taxonomy structure. Each storefront preferably has the same hierarchical configuration or categorization. The structure of catalog database 70 is exemplified in the screen displays shown in FIGS. 6-41.

FIG. 6 illustrates the screen display for the home page of mall 60, which allows a customer 10 to perform product/service searches by inputting a search query by category, department, or manufacturer or supplier name. FIG. 7 illustrates an example responsive page display if the customer 10 selects to search by manufacturer. FIGS. 8-12 show a series of web pages showing all products/services manufactured/supplied by manufacturers/suppliers with names beginning with a "C" that are available for purchase in mall 60 regardless of the merchant/service provider 20 offering such products/services. Web pages such as those shown in FIGS. 13-19 are served to customer 10 setting forth all products across all merchant/service provider storefronts and through all transmitted product/service information stored in the catalog database 70 for the plurality of products/services offered by the plurality of merchants/service providers 20 that are either COMPAQ WORKSTATIONS or are designed for use with COMPAQ WORKSTATIONS, such as mice, adaptors, floor stands, etc. FIG. 20 illustrates the use of a customer shopping cart. FIGS. 21-27 show the web pages served when a customer performs a search by Product category instead of manufacturer. FIG. 28 illustrates the power search capability using multiple filters instead of searching a single parameter. FIGS. 29-35 illustrate the application of a power search for all COMPAQ WORKSTATION products in all categories in subcategories. FIGS. 36-38 illustrate the capability of searching for comparable products within 25% of the price of a particular product. FIGS 39 and 40 illustrate an inventory status search for a particular product. FIG. 41 illustrates a search for sen/ices rather than products. FIGS. 42-44 illustrate processing of a purchase order.

Also, as shown in FIG. 1A, system 100 may also be configured in a manner such that the catalog database 70 and virtual mall 60 interface and interconnect to an accounting application 86, such as the one offered by Deltek, or other similar accounting application. In this manner, system 100 may be used by a merchant/service provider 20 or a customer 10 to perform all of such merchant/service provider 20's or customer 10's back-office accounting necessary to support merchant/service provider 20's or customer 10's business operations. Data relating to sales made by such merchant/service provider 20 via its storefront on the system 100 mall 60 may be transmitted directly to the accounting application 86. Accounting application 86 may then be used by merchant/service provider 20 to generate invoices, track receipts and payables and for other traditional accounting functions. In a similar manner, customer 10 may outsource its accounting functions to system 100 and accounting application 86. Merchant/service provider 20 and customer 10 may then realize cost savings due to this outsourcing of their accounting functions.

System 100 also includes interfaces to other applications needed by the users. For example, system 100 includes an extensible markup language (XML) application or an electronic data interchange (EDI) application 87. Such applications may be desired for use by the users of system 100 in order to convert Purchase Order data which is transmitted in HTML format into another format such as EDI which may be in use in-house in a user's own computers. Once the HTML-formatted Purchase Order data is converted to the format which is compatible to the user's in-house data format, it may be transmitted directly into the user's in-house computer system for further use. Users may realize cost savings from such an application because it can save time and resources which may otherwise be required to re-key data from an HTML-formatted Purchase Order into the data format required for use by the user's in-house computer system.

System 100 further includes a video teleconferencing application 88 for use by the users of system 100 for engaging in interactive real-time communication, and an online help facility 89 with a Frequently Asked

Questions (FAQ) section to assist users with answers to questions concerning the use of system 100 and describing the features of system 100, an email link to an administrator for system 100 whereby users may submit email queries for response by the system 100 administrator if the user's queries are not answered in the FAQ section, for example. System 100 may also include an online teleconferencing system such as the system marketed by

Videogate, or another similar system. The system also includes an electronic white board application 90 wherein the parties participating in the online teleconference may make use of the white board to illustrate matters being discussed in such teleconference. System 100 further includes an off-site archival storage facility which replicates data stored in databases and other features of system 100 in the event disaster recovery is necessary. System 100 may also include other similar maintenance and support facilities.

As shown in FIG. 1A, System 100 also includes a web-based Interactive Past Performance Reporting (IPPR) application and database 75 wherein the users of system 100 may rate their trading partners' performance in the execution of particular tasks (i.e., customers 10 may rate the performance of merchants/service providers 20 and vice versa). System 100 allows this information to be submitted online by a user via a standard HTML format text editor. Each authorized user of system 100 may access the IPPR application 75 by inputting a password. The IPPR database 75 includes a series of standardized performance report forms in HTML format and, once a user is granted access to the IPPR database 75, the user may download a particular form specific to the performance function being rated. The user then inputs the requested information into the form and submits it to the IPPR database 75 via transmission over the Internet 5 to the host server of system 100 which then routes the submitted form to the IPPR database 75 for storage therein. In this manner, if the same user later accesses the IPPR database 75 and seeks information about a particular trading partner and the user's past experiences with such trading partner, the user may retrieve that information. Additionally, other users of system 100 may grant the user authority to access the other users' submitted forms stored in the IPPR database 75 regarding such trading partner. The user may also submit updates and modifications to past submitted forms to the IPPR database 75 if the performance of the rated trading partner changes over time.

A Solicited Electronic Quotations (SEQ) application and database 80 is also provided. Generally speaking, a customer 10 may solicit quotations for the supply of a desired product/service electronically over the system 100 seeking responses from each of a plurality of interested merchants/service providers 20 that desires to respond to the electronic solicitation. This SEQ feature may be accomplished through use of a typical Electronic Posting System (EPS) for posting and downloading HTML documents from an Internet web site. However, as illustrated below in FIG. 3A, the SEQ application and database may go beyond EPS and process identifying characteristics of merchants/service providers in order to put the customers into contact only with merchants/service providers having desired characteristics.

Fig. 1B illustrates a preferred embodiment of the system 100 which is used to process automated solicitations and responsive proposals. In this embodiment, prime-contractors 20 and subcontractors 10 are representative of the customers 10 and merchants/service providers 20, respectively. Prime- contractors 20 and subcontractors 10 are connected over Internet 5 with system 100. The system 100 includes the features described above including security features 50, scalable system architecture 55, virtual mall 60, system management and maintenance 95, catalog database 70, SEQ application and database 80 and IPPR application and database 75.

FIGS. 2A-2C are block diagrams illustrating the catalog database 70,

SEQ application and database 80, and IPPR application and database 75 in a first preferred embodiment of the invention.

In the embodiment depicted in FIG. 2A, catalog database 70 is a subcontractor database that contains information pertinent to services provided by subcontractors 10 instead of the standard product catalog described above. For each participating subcontractor 10, Standard Industry Classification (SIC) codes 66, labor categories 67, pricing information 68, preapproved terms 69, geographic data 71, biographical data 72, and socioeconomic data 73 may be accessibly stored. The information in catalog 70 may advantageously be used as components of an identifier for each participating subcontractor 10 entity. The process of extracting an identifier is further explained below in conjunction with FIGS. 5A-5F.

As shown in FIG. 2B, SEQ application and database 80 is configured to receive solicitations from prime-contractors 20 and provide responsive proposals from subcontractors 10. Solicitations will generally be in the form of Statements of Work (SOW) and will be handled by SOW processor 81. The prime-contractor 10 submitting a solicitation would be required to upload his specifications for a particular project through user interface tools 84 onto the SEQ application and database 80. Generally, in order to upload such information, the prime-contractor 10 will use a secure access mechanism 84a such as a password.

In an exemplary embodiment, the uploaded prime-contractor project SOW contains technical specifications and data concerning parameters, conditions, legal components, physical attributes, network links, references, and technological and material requirements. From the ZIP code of the address of the project site and the SIC code of the project relating to the uploaded solicitation, the SOW processor 81 will automatically provide the prime-contractor 20 with information concerning the locality, jurisdiction, applicable codes and regulatory requirements, permit and licensing requirements, safety certifications, labor union requirements, applicable EPA regulations, contact and schedule data, tax, and city or county regulatory requirements.

SOW processor 81 automatically asks a series of questions to the prime-contractor 20 during the uploading process concerning the project and the prime-contractor's required qualifications of subcontractors 10 to be solicited. SOW processor 81 also offers the prime-contractor 20 the option of requesting a quotation, a proposal, or a request for information in response to the solicitation from the solicited subcontractors 10.

If the SEQ application and database 80 comprises an Electronic Posting System (EPS) system, data storage means 83 will include prime- contractor postings 83a and subcontractor postings 83b. In its simplest form using the apparatus depicted in FIG. 2B, the method for acquisition of goods and services through categorized solicitations and restricted proposal responses uses an SEQ application and database 80 that is based on an electronic posting system. Each entity is able to securely access the system 200 through user interface tools 84. The method of using this system 100 is depicted in FIG. 4 and will be further described in conjunction with this figure.

As shown in Figure 2C, the IPPR database and application 75 of the first preferred embodiment preferably includes user interface tools 78 for receiving past performance information. Participating entities (such as a prime contractor 20) can access the IPPR application and database 75, generally with a password, to provide a report regarding the past performance of another participating entity (such as a subcontractor 10) or vice versa. These performance reports are stored in data storage area 77. The subcontractor performance reports are advantageously stored in area 77a and the prime-contractor performance reports are advantageously stored in area 77b. Subcontractors 10 and prime-contractors 20 may be given access to each other's performance reports as allowed and as necessary so that they may make informed choices.

The method for using the system of the first preferred embodiment is shown in FIG. 4. In step A100, a first entity accesses the SEQ page, preferably through the use of a password. In the prime-contractor 20/subcontractor 10 scenario, the first entity would typically be the prime- contractor 20. In step A102, the first entity 20 uploads the solicitation. The solicitation preferably includes point of contact (POC) data, an SOW, and response requirements. In step A104, the system 100 notifies all subcontractors 10 of the prime-contractor's solicitation. Preferably, the system uses an autoforward command to notify all subcontractors 10 by email of the solicitation. Any notified subcontractors 10 who are interested in responding can access the SEQ page in step A106, preferably with the use of a password. In step A108, interested subcontractors 10 are able to enter responses in accordance with the instructions contained on the SEQ page. In step A110, the prime-contractor 20 or first entity retrieves the responses. To aid in the decision making process, the prime-contractor 20 will be able to access the IPPR database in step A112. The prime-contractor 20 can access any information stored, which information might include a creditworthiness rating or reliability quotient. The prime-contractor 20 can also access catalog 70 to get any additional information not provided by the responding subcontractor 10 on the SEQ page. Finally, upon selecting a subcontractor 10, the prime-contractor 20 posts his selection to the SEQ page in step A114.

The method described in the previous paragraph is the simplest implementation of the method of the invention. A more advanced functionality includes features so that, upon receiving an automated solicitation, the system 100 automatically retrieves identifiers for each subcontractor 10, and provides the prime-contractor 20 with a listing limited to only subcontractors 10 whose identifiers are suited to the particular solicitation. This method is further described below in conjunction with FIGS. 5A-5E.

FIGS. 3A and 3B illustrate a second preferred embodiment of system 100 in which additional components are provided for SEQ application and database 80 and IPPR application and database 75. In the depicted embodiments, prime-contractors 20 and subcontractors 10 will not be required to sort through all postings. Instead the system 100 provides a sorting and searching function to limit the field of prospective prime contractor 20/subcontractor 10 matches. The system 100 performs this function by defining identifiers for each participating prime contractor 20 and/or subcontractor 10 entity which may be accessed and compared to find an appropriate match.

As shown in FIG. 3B, IPPR application and database 75 includes user interface tools 78 and data storage area 77 as described in reference to the first preferred embodiment. However, storage area 77 additionally comprises a storage area for identifier components 77C. Additional provided components include identifier processing mechanism 79 and an update prompter 76. As will be more fully described in conjunction with the associated method, identifier processing mechanism 79 is able to extract information from submitted past performance reports to formulate a creditworthiness rating or a reliability index for a participating entity to be stored as an identifier component in storage area 77c. Periodically, update prompter 76 requests performance updates from participating entities involved in transactions with other participating entities. Processor 76 repeatedly makes the appropriate revisions to update the information in storage area 77.

As shown in FIG. 3A, SEQ application and database 80 of the second preferred embodiment has common components with those described in relation to the first embodiment including SOW processor 81 , data storage area 83, and user interface tools 84. This embodiment of SEQ application and database 80 additionally comprises search engine 87 and identifier processing means 88. Based on the submitted SOW, the search engine is able to sort through information in catalog 70 and IPPR application and database 75 to extract an identifier for each subcontractor 10. Identifier processor 88 is able to compare the identifiers and select the most well suited subcontractors 10. Identifier processor 88 performs comparisons such that identifiers associated with solicitations will be matched only with identifiers which meet a threshold matching level. The method for using the system disclosed in FIGS. 3A and 3B is shown in FIGS. 5A-F. Identifiers are automatically created by system 100 on a continuous basis. Figs. 5A-5C illustrate the creation of identifiers. Fig. 5A illustrates the main procedures involved in creating identifiers. In B100, prime-contractor 20 and subcontractor 10 information is assembled into catalog database 70. In B200, past performance data for each prime-contractor 20 and subcontractor 10 is stored in IPPR application and database 75. Fig. 5B illustrates the steps involved in assembling information for the identifiers in the catalog database 70. In step B102, system 100 requests information from participants. In step B104, the system 100 receives the input information and stores it in the catalog database 7 in step B106. Periodically, in step B108, the system 100 requests updates. If updates are available in step B110, the system 100 returns to step B104 to receive information.

Fig. 5C illustrates the details of B200. In B201, the system 100 processes a transaction between a prime-contractor 20 and subcontractor 10. Subsequently, in step B202, the system 100 requests information relating to the transaction from participating entities. In step B204, the IPPR database 75 receives the requested information through user interface tools 78. In step B205, the requested information received is processed by processor 79. The processing may include calculation of a creditworthiness rating or reliability quotient for each participating entity. In B206, processed information is stored in data storage section 77 of the IPPR 75. Processed prime-contractor 20 information is stored in section 77a and subcontractor 10 information is stored in section 77b. Identifier information such as calculated indices for each participating entity is stored in identifier storage area 77C. In step B208, additional information regarding each entity's performance in connection with the transaction is requested by update prompter 79. If information is available in step B210, the routine returns to the receiving information step B204.

After completing these procedures, the system 100 has stored sufficient information to retrieve identifiers for each participating entity. Identifiers may be comprised of varying combinations of the informational data stored in IPPR database 75 and catalog database 70 such as available products/services, terms previously agreed upon, and the entity's creditworthiness rating.

Fig. 5D illustrates the method of the present invention using identifiers in order to avoid overloading prime-contractors 20 with unnecessary information. In step C100, the prime-contractor 20 uploads a solicitation to the SEQ page 80. The solicitation is processed by SOW processor 81 and stored in SOW data storage area 83 in the manner described above with reference to the EPS system. The process is shown in more detail in FIG. 5E. In step C100, the prime-contractor 20 accesses the SEQ application and database 80. In step C102, the prime-contractor 20 uploads building specifications and data. The prime contractor 20 may also specify certain requirements which must be met by subcontractor 10 submitting a solicitation in response to the prime contractor's request for solicitations. For example, the prime contractor 20 may specify: a set of core competencies which must be possessed by subcontractors 10 submitting solicitations, a set of acceptable terms and conditions which must be included in any solicitation, an acceptable number of available personnel for a specified labor category, minimum operating capital, minimum IPPR score, minimum Dun & Bradstreet rating and other similar parameters. In step C104, the SEQ application 80 provides any additional requirements. In step C106, the SEQ application 80 provides prompts to which the prime-contractor 20 responds. In step C108, the system 100 receives input responses from the prime-contractor 20. Finally, in step C110, the system 100 receives the prime-contractor 20's request, which may be a request for a quotation, for a proposal, or for other information.

Referring to FIG. 5D, in contrast to the EPS embodiment, in step C200, search engine 87 searches IPPR database 75 and catalog database 70 to retrieve identifiers of participating subcontractor 10 entities. In step C300, identifier processor 88 compares the retrieved identifiers with the solicitation requirements uploaded to the SEQ page 80. The comparison is illustrated in greater detail in Fig. 5F. Generally, for subcontractors 10, the identifier processor 88 will determine in C301 if SIC codes match the SIC code requested in the solicitation. If SIC codes do not match, the identifier processor 88 will check for additional subcontractor entities. If the SIC codes match in C301, the processor 88 will determine in C302 if the subcontractor's labor categories match those included in the solicitation. If both pairs of SIC codes and labor categories match, the subcontractor 10 entity and its identifier will be recorded in C304. The processor 88 checks for additional entities having identifiers matching those included in the solicitation in C306. It is important to note, that other criteria could be selected as the matching criteria. FIG. 5F merely provides one embodiment.

Returning to FIG. 5D, in step C400, identifier processor 88 selects only those subcontractor entities having identifiers matching the identifiers included in the solicitation. Finally, in step C500, the soliciting prime- contractor entity is provided with the subcontractor entities selected through the matching step and their identifiers.

It will be apparent to those skilled in the art that various modifications and variations can be made in the system and method of the present invention without departing from the scope or spirit of the invention. Thus, it is intended that the present invention cover the modifications and variations of this invention provided they come within the scope of the appended claims and their equivalents.

Claims

WHAT IS CLAIMED IS:

1. An automated system for acquisition of goods and services through categorized solicitations and restricted proposal responses over a general purpose computer network, the system comprising:

host server means connected to said general purpose computer network for transmitting information to and receiving information from a plurality of participating entities;

database server means, connected to said host server means, for transmitting information to and receiving information from said host server means, said database server means comprising,

a past performance database for storing information regarding performance characteristics of participating entities,

a catalog database for storing product and services information for participating entities,

a solicited electronic quotations application and database for facilitating entry of a request for products and services, comprising,

a search engine for collecting information from the past performance database and the catalog database upon receipt of a solicitation, and

matching means for comparing performance characteristics stored in said past performance database of each of a plurality of participating entities responding to another participating entity's solicitation for products and/or services to predetermined performance characteristics established by said another participating entity in said solicitation..

2. The system of claim 1 , wherein the catalog database comprises data pertaining to characteristics of a plurality of participating subcontractors.

3. The system of claim 2, wherein the data stored in said catalog database comprises SIC codes, labor categories, and pricing data for the goods and/or services.

4. The system of claim 1 , wherein the solicited electronic quotations application and database comprises user interface tools including a password protection mechanism and an automatic forwarding mechanism.

5. The system of claim 1 , wherein the solicited electronic quotations application and database comprises a statement of work processor.

6. The system of claim 1 , wherein the solicited electronic quotations application and database comprises a data storage area for storing prime- contractor postings and subcontractor postings.

7. The system of claim 1 , wherein the solicited electronic quotations application and database comprises a search engine for retrieving identifiers from the past performance database and the catalog database.

8. The system of claim 1 , wherein the past performance database comprises user interface tools for facilitating entry of past performance reports.

9. The system of claim 8, further comprising an identifier processing means for processing input performance reports to create identifier components.

10. The system of claim 9, further comprises a data storage area for storing subcontractor performance reports, prime-contractor performance reports, and identifier components.

11. A method for selectively prompting proposals in response to an automated solicitation comprising the steps of:

(a) creating an identifier for each one of a plurality of participating entities, the identifier comprising multiple components; (b) storing the multiple components of the identifier for each one of said plurality of participating entities in a past performance database and in a catalog database;

(c) uploading a solicitation from a first entity to a solicited electronic quotation application and database, said solicitation including an identifier for selection;

(d) comparing the identifiers stored in the past performance database for each one of said plurality of entities to the identifier of the first entity included in the solicitation;

(e) selecting a limited group of entities having identifiers that match with the identifier of the first entity included in the solicitation; and

(f) providing the first entity with the selected limited group of entities and their identifiers.

12. The method of claim 11, wherein the step of creating an identifier comprises recording performance characteristics of each one of the participating entities related to each past transaction conducted by the participating entity.

13. The method of claim 12, wherein the recorded performance characteristics comprise at least one of the products and services offered by a selling participating entity, products and services requested by a buyer entity, agreed upon terms and conditions for sale of products and/or services, and a creditworthiness rating.

14. The method of claim 11 , wherein the step of uploading the solicitation comprises uploading a buyer's statement of work.

15. The method of claim 11 , wherein the step of uploading the solicitation comprises accessing the solicited electronic quotations application with a password; uploading specifications in response to prompts; and submitting a request for one of a quotation, a proposal, and information.

16. The method of claim 11 , wherein the stored multiple components include for a participating entity SIC codes, past performance ratings, labor

5 category codes, and price terms for sale of products and/or services.

17. The method of claim 11 , wherein the step of comparing identifiers comprises searching for a participating entity having an identifier which includes a SIC code that matches an SIC code included in the identifier of the first entity, and labor categories that match the labor categories included in o the identifier of the first entity.

18. The method of claim 17, wherein the step of comparing identifiers further comprises comparing indices stored in the past performance database for each of the participating entities to indices specified by the first entity in the solicitation.

5 19. A method for selectively prompting proposals in response to a solicitation comprising the steps of:

(a) permitting a first entity to access a solicited electronic quotation application and database with a password;

(b) uploading a solicitation from the first entity to the solicited 0 electronic quotation application and database;

(c) providing the first entity with access to a past performance database, said past performance database including information regarding past performance characteristics of each of a plurality of participating entities, to assist in selection of a limited group of participating entities from among the 5 plurality of participating entities;

(d) allowing the first entity to specify a set a parameters of performance characteristics in order to select said limited group of participating entities from the plurality of participating entities to receive a solicitation;

(e) notifying the selected limited group of participating entities of the solicitation;

(f) allowing the selected limited group of participating entities to access the solicited electronic quotation application; and

(g) receiving and forwarding responses to the solicitation received from the selected limited group of entities to the first entity.