7334 - Auction Services SOW
AUCTION SERVICES
SCOPE OF WORK
PURPOSE
The purpose of this bid is to establish an agreement with a Vendor who can provide auction services to
facilitate the sale of City-owned salvage and equipment primarily during online internet auctions and
at live public auctions. The City reserves the right to add/delete any additional Auction Items as
needed.
1.0 ENGAGEMENT
1.1 City seeks a Vendor to sell at public absolute auction sales. City’s property identified
by City (“Auction Items”) that Vendor agrees to sell.
1.2 Vendor shall conduct all sales of Auction Items from both Vendor’s and City’s property.
1.3 City of Denton reserves the right to request a minimum reserve and have the
ability to change the minimum reserve, when necessary.
1.4 Vendor shall submit proof of a valid auctioneer license required by Texas law for
all auctions.
1.5 No auctioned items of any kind for any auction shall be transported, shipped or
arranged to be transported or shipped by the City.
1.6 Vendor shall be responsible for all communication with potential bidders regarding
items included in the auction via phone or other means of communication.
1.7 Unless otherwise directed by the City, unsold equipment will be rescheduled and re-
auctioned at the next available auction.
1.8 Vendor shall be responsible for taking photographs of property and equipment and
lotting items for online auctioning purposes. All items will be pre-lotted before start of
auction by the Vendor. The City shall provide a list of items for auction on a manifest
to the Vendor. Vendor shall take possession of any property and equipment to be sold
and distributed out of their facility. If equipment is too large to move to Vendor’s
location for auctioning, then items will be sold onsite at the City by the Vendor and
will be managed by the Vendor.
1.9 Vendor may, in its sole discretion, accept or reject any Auction Items proposed for
auction sale by City.
1.10 Vendor shall register bidders and assign bidder numbers. Registration should include
name, current address, telephone of the person being registered to bid, name is to
appear on the title and/or receipt and method of payment. Copies of the computer-
generated list of purchasers will be provided with payment and information package.
1.11 Vendor shall sell all Auction Items on an "As Is, Where Is" basis without any
warranty of any kind, expressed or implied.
1.12 Vendor shall make every effort to ensure that each bidder is at least eighteen (18)
years old and that bidders have been informed of the terms and conditions of the
auctions and release the City from claims on warranties. Sales shall be made to the
highest responsible bidders. Vendor shall register only those individuals who have
complied with auction rules. Current City employees, members of their immediate
families or authorized agents for said employees shall not be registered to bid.
1.13 Vendor shall provide all necessary employees to achieve the efficient and orderly
performance of the Services contemplated by the agreement. Vendor shall employ
qualified personnel to perform the Services and shall perform the Services in a
professional and skillful manner.
1.14 City will deliver any other related paperwork such as a seller-specific bill of sale for
each Auction Item no later than 10 days prior to the auction date. If City does not
deliver the necessary paperwork for an Auction Item at least 10 days prior to the
auction date, Vendor will not make the Auction Item available for sale at the auction
and will delay the sale of the Auction Item to a future auction date.
1.15 Upon taking possession of an Auction Item, Vendor’s insurance, required by the
agreement, shall cover all claims for damage to an Auction Item, except for acts of
God.
1.16 City, and any agent of City acting in the course and scope of their employment, shall
not bid on or buy-back any Auction Items.
1.17 If City, or any agent of City acting in the course and scope of their employment,
attempts to bid on or buy back any of the Auction Items, Vendor will, at Vendor’s
discretion:
1.17.1 Pass the Auction Item currently being offered for sale; or
1.17.2 Sell the Auction Item to the last “Good Faith” bidder before City, or the
agent of the City acting in the course and scope of their employment, began
bidding on such Auction Item.
1.18 Vendor shall have no less than five (5) years verifiable experience in the auctioning
of governmental equipment, surplus and property of auctions of similar size and scope.
Failure of Vendor to have the foregoing experience will disqualify Vendor from award
of this bid.
1.19 Vendor shall have large verifiable and well documented presence in the governmental
auctions industry. Vendor shall submit list of current customers with bid and give
website address with access to the City for evaluation of bid.
1.20 Vendor shall be responsible for grouping, testing of property for functionality and
condition, cleaning and reasonable preparation of property; research and evaluation
of property for auctions; and providing free appraisal and/or certification of property
that are of special interest or value, as required.
2.0 ONLINE AUCTION
2.1 The City will provide a list of goods including brief descriptions five (5)days
before any scheduled auctions by email to the Vendor.
2.2 The City will provide items for online auction; photographs shall be taken by the
Vendor.
2.3 Vendor’s website shall be that which is acceptable and meets the common standards
or practices within the online auction industry. Website shall be easy to navigate and
have the capacity to accommodate an unlimited number of customers and auctions.
Website must have the ability to handle all items to be auctioned including but not limited
to: descriptions, digital photographs, all terms and conditions for multiple City auctions
along with other separate agency auctions.
2.4 The City shall provide a list of items for auction on a manifest to the Vendor. Vendor
shall take possession of any property and equipment to be sold and distributed out of
their facility. If equipment is too large to move to Vendor’s location for auctioning,
then items will be sold onsite at the City, by the Vendor and will be managed by the
Vendor.
2.5 Vendor’s online auctions shall consist of any/all items on an as needed basis.
Property and small equipment shall be picked up and removed by the Vendor at the
designated and agreed upon pick up time and location.
2.6 The City’s Auctioned Items shall be placed on an electronic and/or hard copy
manifest listing according to the Vendor's specifications
2.7 The City shall provide different numbering for each account that will be provided to the
Vendor and used for different departments and for different accounting purposes in
order to track the items and streamline the accounting for specific departments.
2.8 The City will provide a final and updated list to the Vendor. The Vendor shall not
divide auction lots unless otherwise authorized and approved by the City.
2.9 The Vendor shall place photographed auction items in the designated lots, tracking the
progress of each item in each lot from the list or manifest provided by the City.
2.10 Vendor shall notify and provide documentation to the City of any property of no value
scheduled for destruction. Both parties must mutually agree.
3.0 AUCTION DATES AND TIMES
3.1 Auctions shall begin and end at the times and dates as required by the City and by
mutual agreement with the Vendor.
3.2 Auction shall begin no later than five (5) business days after list and photographs have
been submitted to the City.
3.3 Auction shall run for duration of no more than a maximum of 21 calendar days, one
of which shall be a City business day for preview.
3.4 An extension of the auction may be mutually agreed upon by both the City and Vendor.
3.5 Auction preview shall be at or near the seventh day of the auction duration during the
hours of 8:00 AM to 4:00 PM by appointment with the Vendor or appointed
representative. Preview can be by other methods or at any other time as determined by
the Auction Coordinator or appointed representative.
3.6 The internet auction site shall be a secured site (not a shared site) which is available 7
days a week, 24 hours a day. Qualified bidders should be able to use their debit or credit
card to pay for bids online.
3.7 Vendor shall use a method in which is common practice within the online Auctioning
industry to close or stop taking bids from the customers for each lot; the Vendor shall
submit this method with bid.
3.8 Time for payout by successful customers shall run for duration of no more than a
maximum of three (3) business days from close of auction. At the end of the three (3)
business days, if payment has not been made, customer shall be deemed as a no pay/walk
and shall not be allowed to participate in future live or online City auctions.
3.9 The Vendor shall be responsible for collecting and paying all sales tax.
4.0 PAYMENTS
4.1 Vendor shall deduct the seller’s fee from the gross proceeds of the auction sale.
4.2 In the event that a successful bidder fails to pay Vendor for an Auction Item for
which such bidder is designated to be the high bidder, then the applicable Auction Item
will be deemed a “No Sale” and no commission will be charged to the City for the
Auction Item and the City will retain ownership of the Auction Item.
4.3 Vendor shall charge and collect from the purchaser of each Auction Item the
purchase price and all applicable taxes. Vendor will collect payment in full from
each purchaser before the purchaser may remove the Auction Item from the auction
site.
4.4 Within fourteen (14) business days following an auction sale, Vendor shall pay to the
City the net proceeds from the Auction Items sold, less Vendor’s fee and also provide a
summary statement, "Final Auction Results". Payment shall be made by Vendor to the
City by wire transfer. When Vendor delivers payment to the City, Vendor shall deliver
to the City:
4.4.1 An itemized invoice listing each Auction Item sold;
4.4.2 A list of all unsold Auction Items; and
4.4.3 A buyers list indicating the name, address, and telephone number of each buyer
who purchased an Auction item.
4.5 Vendor shall provide an invoice to each successful bidder and the City showing lot
number purchased with description, bid amount and any applicable taxes.
4.6 Vendor shall be fully responsible for the collection and security of the money, during
the auction and until the funds are delivered to the City or assigned representative.
4.7 Vendor shall be responsible for establishing criteria for accepting payment from
registered bidders. These criteria will be in writing, posted at the auction site and copy
included in all auction advertisement and website.
4.8 Vendor shall submit a copy of the criteria with the response to the bid.
4.9 Vendor shall bear the expense of any check or payment method that is returned for
"insufficient funds" or "closed account." If the Vendor accepts personal checks or
other methods of payment from bidders, the check or payment will be made in the
Vendor’s name.
4.10 Vendor shall be responsible for the collection of those funds.
4.11 Vendor shall collect sales taxes on property/merchandise that is taxable, such as: shop
equipment and parts that are sold at the auctions.
4.12 Vendor shall be responsible for making all sales tax payments to the State of Texas at
the prevailing rate.
4.13 If, at any time, a registered bidder refuses to make complete payment for goods, the
bidder will not be considered a valid bidder for a period of no less than one year.
4.14 After funds have been remitted for property and equipment, the property will be shipped
to the bidder at the bidder's expense. The Vendor shall handle all shipping of auction items
to the bidder and will be responsible for any claims regarding the shipping of the property
or equipment. Equipment too large for shipping will have pick-up arrangements made
between the bidder and the Vendor.
4.15 Any goods left behind for nonpayment or any other reason may be:
4.15.1 Sold to the next highest bidder at the price bid; or
4.15.2 Resold at next available auction to the highest bidder.
5.0 REPORTS- FINAL AUCTION RECONCILIATION
5.1 Vendor shall have fully computerized operations for performance of all monthly auction
reports such as: Totals Report, Auction Listing Summary, All Lots Report, Depreciation, Historical,
Previous/Post lists and statements. Reports provided to the City by the Vendor with full disclosure of all
items turned over to the Vendor for the online auction, shall include, but not be limited to: Totals Report
Summarizes number of lots listed, number of lots sold, number of participating bidders, number of
winning bidders, number of bids placed.
5.1.1 Auction Listing Summary – Actual copy of the City’s auction title page which
lists all pertinent information on auction such as date and time of closing, location
of items, highlights of items being sold, categories of items, special notes, terms
of auction; including payment terms, removal terms, removal locations and any
special instructions regarding removal.
5.1.2 All Lots Report – Lists each lot number, lot description, final sales price and
winning bidder number for all auctions to the Purchasing Department.
5.1.3 Vendor shall provide additional reports deemed beneficial to the City such as, but not
limited to: Depreciation, Historical Data, Previous/Post results.
6.0 ADDITIONAL INFORMATION
6.1 Vendor shall pick up smaller items to be processed for online auctions monthly.
Larger equipment will be securely stored at Vendor’s location and/or City’s location.
6.2 The City reserves the right to inspect all equipment, tools and facilities required to be
used in the performance of the agreement before, during and after the award of the
agreement.
6.3 Vendor’s equipment, tools and facilities shall function properly and shall remain
operational throughout the life of the agreement.
6.4 Vendor shall ensure all equipment, tools and facilities used in the performance of the
agreement shall be fully maintained clean, in good working condition, suitable for the
intended purpose and operated by qualified personnel.
6.5 Vendor shall provide a pricing list of additional auction services available that the City
may deem useful but are not stated above.
6.6 Vendor shall store items for auction in a secure location. For larger items that are too
large to be removed, these will remain onsite at the City’s location and will be
auctioned from City site by Vendor.
7.0 Sample Reports.
Vendor
1234 W. Cosgrove Ave.
Bedford, TX 76021
FINAL AUCTION RESULTS
May 06, 2019
Business Name
Contact Name
Address
City, State Zip
Dear Customer:
We want to thank you for the opportunity to hold your April 20, 2019. Enclosed is your check for the net
auction proceeds.
Your Current Totals, Auction Listing Summary and All Lots reports have been emailed to you
today. The following is a recap of your auction proceeds.
FINAL AUCTION RESULTS
Entity/Consignor Amount % Less
Commission
Net Proceeds
COFW $162,217.25 4.0 $6,488.69 $155,728.56
ADJUSTMENTS, IF APPLICABLE
Lot # Bidder Original Amount Adjusted Amount Reason
Sales tax, if any, will be remitted to the Texas Department of Revenue by Vendor, certificate number 1-80-
2361751-1 and Texas Auctioneer Licenses #6644, #15025, #12100.
Respectfully,
John Adams
John Adams
President
Auction Totals: 108
Tarrant County, Texas (Fort Worth) – CLOSED
Closed: April 20, 2019 Beginning at 10:00 AM CST
Lots Bids Sales
Total
Lots with bids
40
40
Standard bids 600
Max bids 411
Total bids 1011
Total Sales $162,217.25
Lot Details 108
Tarrant County, Texas (Fort Worth) – CLOSED
Closed: April 20, 2019 Beginning at 10:00 AM CST
Lot Description Bids Amount Reserve Winner End Time
5
4
Miscellaneous Scrap Metal such as metal
desks and cabinets; Lot also Includes a few
wooden desks; Location 2 (1}
9 75.71 0.00 31
92
4
3/11/2016 10:28:00 AM
5
6
Approximately 110 Old Office Chairs and
Chalr Pieces; Location 2 (1)
11 25.00 0.00 31
92
4
3/11/2016 10:29:00 AM
5 Approximately 15 Old Stih! Trimmers and
Parts; Location 3 (1)
16 1,311.
00
0.00 56
49
0
3/11/2016 10:49:30 AM (
7
Approximately 6 Honda Push Mowers, 1 BI
Goat Vacuum and 1 Pro Trim 22; Location 3
16 800.0
0
0.00 53
70
4
3/11/2016 10:34:24 AM
(1)
5
9
Approximately 4 Shop Vacs and Pieces and
Approximately 6 Assorted vacuums; Location
3
(1)
35.01 0.00 60
02
1
3/11/2016 10:32:00 AM
6
0
2 Pion Jar 120 Drivers; One ls a. 1984 Model
and the other 1989 Model; One Is missing a
pull cord; Location 3 (1)
17S.O
O
0.00 80
16
3/11/2016 10:33:00 AM
6
1
2001 Dayton 3LW64 Proresslona1 Duty
Generator; Asset a36404; SN GJ096978·58;
UNKNOWN HOURS; Honda GX620/V-Twln
20 hp Engine; Loc:atlon 3 {1)
18 700.0
0
0.00 53
70
4
3/11/2016 10:41:25 AM
6 2002 Stihl TS400 Cutoff Saw with metal 12 560.0 0.00 52 3/11/2016 10:35:00 AM