Guide to the Records of FreeMarkets 1995-2002
- Repository
- Heinz History Center
- Title
- Records of FreeMarkets
- Creator
- Stevens, Robert
- Collection Number
- MSS#378
- Extent
- 1 cubic feet (2 boxes)
- Date
- 1995-2002
- Abstract
- Headquartered in downtown Pittsburgh, FreeMarkets is a full service market maker that connects heavy industry corporations with the internet. The company provides software, services, and a global computer network that allow industrial purchasing departments to bid out purchase requirements to suppliers in real-time, on-line competitive bidding events. These records include plans, e-mail correspondence, presentations, questionnaires, manuals with corresponding floppy disks, and other miscellaneous materials relating to the development and organization of FreeMarkets from 1995-2002. The collection focuses mainly on the company's early development, general operations, and software, but also provides limited information about financial matters and day-to-day activities.
- Language
- The material in this collection is in English.
- Sponsor
- This finding aid has been encoded as a part of the Historic Pittsburgh project a joint effort of the University of Pittsburgh and the Historical Society of Western Pennsylvania. Funding for this portion of the project has been donated by the Hillman Foundation.
- Publisher
- Heinz History Center
- Address
- 1212 Smallman St.
Pittsburgh, Pennsylvania 15222
library@heinzhistorycenter.org
URL: https://www.heinzhistorycenter.org
History of FreeMarkets
FreeMarkets is a full service market maker that connects heavy industry corporations with the Internet. The company provides software, services, and a global computer network that allow industrial purchasing departments to bid out purchase requirements to suppliers in real-time, on-line competitive bidding events.
The cofounders of FreeMarkets, Glen Meakem and Sam Kinney met in 1992 when they both joined the national consulting firm of McKinsey and Company as purchasing consultants. Although Meakem left McKinsey to join General Motors, the two kept in touch. FreeMarkets was incorporated in March of 1995 and the two 35-year-old entrepreneurs were well on their way. With the suggestion of Kinney, the company headquarters became downtown Pittsburgh, Pa.
During the first three years of operation, FreeMarkets sought to grow and establish itself in the market. The first version of the company's bidding software entitled, "BidWare" was shipped out in November of 1995. During that same month, FreeMarkets launched its first pilot competitive bidding event (CBE) with Frigidaire. In January of 1996, FreeMarkets completed a successful CBE with Phillips. Throughout the year, the company added several new clients such as JCI, Zenith, and Carrier/UTC. In October, the company completed a market making desktop. Throughout 1997, FreeMarkets continued to add more clients such as Caterpillar, Thomson, HLP, Westinghouse, and GM. By December, the company's original four employees had expanded to 37.
In 1998, FreeMarkets enlarged greatly. In January, the company received a Pennsylvania job creation grant. In September, the company opened an office in Brussels and Maytag became a client. In October, the company moved to a new, expanded office space in One Oliver Plaza. By the end of the year, GM committed to a European pilot CBE and there were 100 employees.
The years from 1999 to 2002 brought several changes for FreeMarkets. In December of 1999 FreeMarkets made its stock available to the public. The stocks opened at $48 per share and closed at $280 per share. At the time, this was the fourth largest percentage gain in history for a United States initial public offering. In September of 2000, One Oliver Plaza changed its name to FreeMarkets Center in honor of its largest tenant. In October, co-founder Sam Kinney resigned from FreeMarkets. During 2001, FreeMarkets attempted to acquire Adexa, Incorporated and had to face lawsuits by shareholders who felt that FreeMarkets had defrauded them by inflating revenues.
Scope and Content Notes
The FreeMarkets Records are housed in two archival boxes and are arranged alphabetically by folder title. These records include plans, email correspondence, presentations, questionnaires, manuals with their corresponding floppy disks, and other miscellaneous materials relating to the development and organization of FreeMarkets from 1995-2002.
The greatest strengths of the records are their information on the company's early development and the BidWare software. The company's overall operation is evident in the business plans as well as the presentations. Information on supplier outreach, logo development, and some early publications all provide further insight into the company's early stages. The early development in the technical aspects of the company can be found in a hand-drawn diagram of the network layout, a printout of the first pilot competitive bidding event, and a folder on the initial (1.0-1.5) BidWare releases.
The FreeMarkets records also provide a strong source of information on the BidWare software. There are several manuals about BidWare and its installation for both buyers and suppliers. In addition to the manuals, there are six floppy disks for the installation of BidWare 2.5 as well as an introductory CD Rom disk.
An interesting source of information is the Supplier Questionnaires. Suppliers who were clients of FreeMarkets filled out these questionnaires and provided general information such as what they produced, their hours of operation, levels of production, etc.
Although there is ample information on the general operations and the software, the FreeMarkets records provide relatively little information on financial matters or daily operations. The only exceptions in terms of financial information being a 1996 memorandum on the stock, a 1999 publication by Bear Stearns, and FreeMarkets' 1999 Annual Report. The folder of email correspondence offers the only insight into daily activities. These company emails range in topics from babies born to Slurpee runs to information about stocks and other formal company business. Finally, the collection offers no information on the company's outreach and charitable activities.
Arrangement
The FreeMarkets Records are house in two archival boxes and are arranged alphabetically by folder title.
Conditions Governing Access
This collection is open for research.
Immediate Source of Acquisition
These items came in one accession in 2002.
Acc# 2002.0266 Gift of Robert Stevens.
Preferred Citation
Records of FreeMarkets, 1995-2002, MSS#378, Historical Society of Western Pennsylvania.
Processing Information
This collection was processed by Jaimie George on January 23, 2003.
Revision and rearrangement for the encoded version of the finding aid provided by Heather Lucas on June 14, 2003.
Conditions Governing Use
Property rights reside with the Historical Society of Western Pennsylvania. Literary rights are retained by the creators of the records and their heirs. For permissions to reproduce or publish, please contact the curator of the Archives.
Subjects
- FreeMarkets
- Adexa, Incorporated
- BidWare
- Frigidaire
- FreeMarkets Center
- One Oliver Plaza
- Sam Kinney
- Glen Meakem
- Computer Communications Systems
- Computer Networks
- Computers -- Programming
- Computer Programs
- Computer Service Industry
- Contracts, Letting of
- Industrial Procurement Markets
- Markets
- Market Surveys
- Technological Innovations
- Technical Writing
- Technology -- Computer Programs
- Technology -- Documentation