Title
CONTRACT NO. K-1213-122: 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 NO. B-1213-98.
Body
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. Throughout the years, the City has utilized the services of several different auction companies to sell these items.
DESCRIPTION: On December 3, 2012, Request for Proposal RFP-1213-59 for auction services was mailed to three vendors and advertised in The Norman Transcript. The closing date for the RFP was December 18, 2012. All three vendors responded with proposals as follows:
Govdeals is an online auction company which charges up to a 7.5% buyer's premium (the premium varies based on the amount of the item being auctioned);
Big Iron Online Auctions charges up to 7% commission with no buyer's premium;
Rosenfelt Auction Services charges a 15% commission.
It is proposed to utilize an online auction service for the 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.
Under Govdeals' proposal, the City would photograph the items and upload them onto the Govdeals website. The City would be responsible for invoicing the winning bidder for the bid plus the buyer's premium, collecting payment, and remitting the buyer's premium to Govdeals as invoiced.
Rosenfelt Auction Services was the only vendor that submitted a proposal for live auctions. It is anticipa...
Click here for full text