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CONTRACT K-1617-40: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND BIG IRON ONLINE AUCTIONS TO PROVIDE AUCTIONEER SERVICES FOR THE CITY OF NORMAN AND PERFORMANCE BOND B-1617-18.
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BACKGROUND: Pursuant to Article III of Section 8 of the City Code, the City of Norman has an ongoing process of declaring items/equipment as surplus and/or obsolete and selling surplus items at auction. Since the implementation of online auctions with Big Iron Auctions three years ago, 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.
DESCRIPTION: The City Code, Section 8-204 exempts contractual services of a professional nature such as engineering, architectural, and medical services from competitive bidding requirements. Big Iron has performed above expectations providing auctions services for the City of Norman during the past three (3) years. Staff recommends approval of the Auction Services Contract with Big Iron Online Auctions.
Big Iron Online Auctions charges up to 7% commission with no buyer's premium for items purchased through their auctions.
The City of Norman has utilized an online auction service for vehicles and equipment stored at the Fleet Maintenance Division as online auctions for vehicles tend to generate higher revenue versus traditional auction methods. A buyer's premium is a percentage additional charge on the winning bid at auction that must be paid by the winner. It is typically charged by the auctioneer to cover administrative expenses. The buyer's premium goes directly to the auction house and not to the seller.
Big Iron Online Auctions is based in Ada, Oklah...
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