FreeMarkets, AMS Focus on Public Sector

FreeMarkets Inc., an online auction marketplace, has joined forces with

American Management Systems Inc. to create a public-sector procurement venture.

AMS, based in Fairfax, Va., provides financial and procurement solutions

to more than 300 state and local governments. Those relationships, combined

with Pittsburgh-based FreeMarkets' online auction capabilities, will allow

public sector procurement officials to make "market-based buying decisions"

on commodities and services.

FreeMarkets has been conducting online auctions for the city of Pittsburgh

for more than a year. The AMS partnership will help the company expand its

public-sector presence.

Under the agreement, AMS will integrate FreeMarkets' online auction

capability into its existing "eProcurement" solutions for government clients.

The two companies will jointly market and sell the product.