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RFP 8949 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.
PROPOSAL FORMAT AND SUBMISSION
• Executive Summary: Introduce the vendor and express interest in providing auction
services. Brief overview of the proposal, highlighting key strengths.
• Table of Contents: For easy navigation of the proposal document.
• Vendor Qualifications
o Company Background: Legal name, years in business, ownership structure.
o Experience: Demonstrated history of conducting auctions for public entities.
o References: At least 3 recent clients, preferably municipal or government.
• Scope of Services
o Auction Types Offered: Online, live, sealed bid, surplus liquidation.
o Marketing Strategy: How the vendor will promote auctions to maximize
participation.
o Technology Platform: Description of the online auction system, bidder
registration, and payment processing.
o Logistics: Item pickup, storage, and delivery procedures.
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 Vendor or 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
reauctioned at the next available auction.
1.8 City shall be responsible for taking photographs of property and equipment and lotting
items for online auctioning purposes. All items will be pre-lotted before the 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 the 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 number 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
of age 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 the 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 the award of this bid.
1.19 Vendor shall have a 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.
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 City.
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 the 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
manifesting 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 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 Vendor.
3.3 Auction shall run for a 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 advertisements 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.
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