Explanation
BACKGROUND: For the option to purchase On-Line Surplus Auction Services for use by the City of Columbus. The term of the proposed option contract would be through July 31, 2005 with an option to renew the contract for up to four additional one-year periods.
Columbus City Code Chapter 329, section 329.30 provides for the sale of city-owned personal property as follows:
All personal property of the city no longer needed for public use shall be sold by the director of finance or designee upon written recommendation of the director of the city agency having control of such property. Such property shall first be offered for sale or transfer to any other city agency at its present value. If not sold to another city agency, such property shall be sold to the highest bidder in a manner prescribed by the director of finance or designee.
Based on this section of the Code, the City Finance Director may choose to prescribe the sale of surplus via on-line surplus actions. The Purchasing Office has conducted research regarding on-line auction results. Based on the results of Montgomery County, Ohio, it appears that this type of auction yields higher bids than the traditional live auction.
The Purchasing Office recommends a contract be established based on a contract already in place for on-line auction services established by the State of Ohio. The State of Ohio, Department of Administrative Services, General Services Division, Office of State Purchasing advertised and requested proposals for on-line auction services on behalf of the State of Ohio governmental agencies just this past summer. Approximately ten potential providers were contacted, two providers (2 MAJ) responded. After conducting a review and scoring the proposals, the State of Ohio Office of State Purchasing recommended the contract be awarded to GovDeals, Inc.
The Purchasing Office has reviewed the State of Ohio's RFP documents and the GovDeals, Inc. response. The Purchasing Office has conducted negotiations with GovDeals, Inc. in order to establish an agreement for on-line auction services on behalf of the City of Columbus. The agreement term is the same length as the State of Ohio contract; however, additional terms and conditions requested by the City have been incorporated into the proposed agreement. Because the State of Ohio contract was not established to be a cooperative contract, the City must waive our formal competitive sealed bid requirements in order to pursue this contract. In addition, please note that the contract with GovDeals, Inc. is not exclusive. Therefore, the City is not precluded from requesting auction services (on-line or otherwise) from other providers on a given sale.
The Purchasing Office is recommending award of an option contract for on-line auction services to:
GovDeals - MAJ, CC# 631241096
Estimated Annual Expenditure: While the exact quantity and worth of items to be auctioned is unknown at this time, the on-line auction services will cost between 3.5% and 7.5% of auction proceeds.
The company is not debarred according to the Excluded Party Listing System of the Federal Government. This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Purchasing Contract Account. The City agency that successfully sells an item at auction will be required to fund the auction services from the proceeds of the sale. In the event the fee exceeds $100,000 on a given auction, the City agency will be required to obtain approval to expend from their own appropriations for their estimated expenditure.
Title
To authorize and direct the Finance Director to enter into a contract for an option to purchase On-Line Auction Services with GovDeals, Inc., to authorize the expenditure of one dollar to establish the contract from the Purchasing/Contract Operation Fund, to waive formal competitive bidding requirements, and to declare an emergency. ($1.00)
Body
WHEREAS, the City of Columbus Finance Director may choose to sell city-owned surplus by way of an on-line auction; and
WHEREAS, the State of Ohio just recently established a contract on July 29th, 2003, with GovDeals, Inc. for on-line auction services after the State advertised and solicited proposals and selected the highest ranked offeror; and
WHEREAS, this ordinance addresses the Purchasing Office objective of maximizing the use of City resources by selling surplus at the highest prices; and
WHEREAS, the City has an immediate need to sell seasonal equipment prior to the spring in order to maximize our anticipated sales return, enabling resources for the purchase of other needed law enforcement equipment.
WHEREAS, an emergency exists in the usual daily operation of the Purchasing Office in that it is immediately necessary to enter into a contract for an option to purchase On-Line Auction Services, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance Director be and is hereby authorized and directed to enter into a contract for an option to purchase on-line auction services with GovDeals, Inc.
SECTION 2. That the expenditure of $1.00 is hereby authorized from Purchasing Contract Account, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
SECTION 3. That in accordance with Section 329.27 of the Columbus City Code, this Council finds the best interest of the City is served by waiving, and does hereby waive Sections 329.06 (Formal Competitive Bidding) of the Columbus City Code
SECTION 4. That for the reason stated in the preamble here to, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.