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DECLARATION OF SURPLUS AND/OR OBSOLETE EQUIPMENT AND MATERIALS AND AUTHORIZING THE SALE THEREOF.
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BACKGROUND: The attached list is the supplies, materials, or equipment identified as surplus or obsolete, and is therefore, being prepared for sale at auction. Section 8-301 of the Code of Ordinances of the City of Norman provides that "The City Council must declare surplus or obsolete any supplies, materials, or equipment where the valuation exceeds one thousand dollars ($1,000) prior to the selling of such supplies, materials, or equipment." This item asks Council to declare the items on the list as surplus or obsolete so disposal of those items can proceed to auction.
DISCUSSION: If Council approves the items listed as surplus to proceed to sale at auction, then the auction will be conducted by Big Iron. Council has previously approved Contract K-1213-122 with Big Iron on line auctions in December 2012, after going through a Request for Proposals process (RFP-1213-59). The contract was for one year with potential renewal for up to three one year periods. Since the implementation of online auctions with Big Iron Auctions in the next three years under that contract, revenue generated through 11 online auctions has been in excess of $600,000 dollars. The Purchasing and Fleet Maintenance Divisions have been pleased with the service Big Iron provides. Throughout the years, the City has utilized the services of several different auction companies to sell these items. Online auctions provide a greater audience for products, thus increasing the likelihood to generate increased revenue.
The City Code, Section 8-204 exempts contractual services of a professional nature such as engineering, architectural, and medical services from competitive bidding requirements. As Big Iron had performed above expectations providing auctions services for the City of Norman during the three (3) years under Contract K-1213-122, Staff recommended approval of the Auctio...
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