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Home My WebLink About133-16 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 133-16 File Number: 2016-0310 GOVDEALS, INC.: A RESOLUTION TO APPROVE A CONTRACT WITH GOVDEALS, INC. FOR ONLINE AUCTION SERVICES THROUGH JUNE 22, 2017, AND ANY FUTURE RENEWAL PERIODS, PURSUANT TO A NATIONAL JOINT POWERS ALLIANCE COOPERATIVE PURCHASING AGREEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with GovDeals, Inc. for online auction services through June 22, 2017, and any future renewal periods, pursuant to a National Joint Powers Alliance cooperative purchasing agreement. PASSED and APPROVED on 7/5/2016 %011tt111rl~1% otiti� K 1 7� ��. I Y (J,�.•, •cn M FAYETTEVILLER = Attest: kgS�'�'•'r�s. ! ti Sondra E. Smith, City Clerk Treasurer Page 1 Printed on 716116 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2016-0310 Agenda Date: 7/5/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 7 GOVDEALS, INC.: A RESOLUTION TO APPROVE A CONTRACT WITH GOVDEALS, INC. FOR ONLINE AUCTION SERVICES THROUGH JUNE 22, 2017, AND ANY FUTURE RENEWAL PERIODS, PURSUANT TO A NATIONAL JOINT POWERS ALLIANCE COOPERATIVE PURCHASING AGREEMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with GovDeals, Inc. for online auction services through June 22, 2017, and any future renewal periods, pursuant to a National Joint Powers Alliance cooperative purchasing agreement. City of Fayetteville, Arkansas Page 1 Printed on 71612016 Andrea Rennie Submitted By City of Fayetteville Staff Review Form 2016-0310 Legistar File ID 7/5/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/16/2016 Purchasing / Finance & Internal Services Department Submitted Date Division / Department Action Recommendation: Staff recommends utilizing an existing cooperative contract with GovDeals, Inc. pursuant to an agreement with National Joint Powers Alliance (NJPA) for online auction services through June 22, 2020. This resolution will allow the City to contract with GovDeals, Inc. for an initial term through 06/22/17 and as renewed under the existing NJPA Contract #: 041316-GDI. Budget Impact: N/A N/A Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ Funds Obligated $ Current Balance Does item have a cost? No Item Cost $ Budget Adjustment Attached? No Budget Adjustment Remaining Budget V20140710 Previous Ordinance or Resolution # N/A Original Contract Number: N/A Approval Date: Comments: There is no cost associated with this contract. This is a revenue generating contract and funds are receipted in based on the funding source from which the auction items were expensed from. CITY OF Fn' r e� e�le ARKANSAS MEETING OF JULY 05, 2016 TO: Mayor Jordan Fayetteville City Council THRU: Paul A. Becker, Finance Director FROM: Andrea Rennie, Purchasing Manager DATE: Thursday, June 16, 2016 CITY COUNCIL AGENDA MEMO SUBJECT: Approval to utilize the NJPA cooperative agreement with GovDeals, Inc. for the sale of City surplus via NJPA Contract #: 041316-GDI RECOMMENDATION: Staff recommends utilizing an existing cooperative contract with GovDeals, Inc. pursuant to an agreement with National Joint Powers Alliance (NJPA) for online auction services through June 22, 2020. This resolution will allow the City to contract with GovDeals, Inc. for an initial term through 06/22/17 and as renewed under the existing NJPA Contract #: 041316-GDI. There is no fee charged to the City for utilizing this contract. BACKGROUND: The City has been under contract with GovDeals Inc. (GovDeals) since 2010 to sell surplus equipment and vehicles. Since the initial contract in 2010, the City has sold $3,334,470 in surplus items. The City has received exceptional payback with GovDeals. For instance: 1. 2011 wrecked Tahoe brought $15,501 or 62% of the original purchase price 2. 2004 Compost Grinder brought $181,250 or 76% of the original purchase price 3. 2008 Landoll Trailer brought $35,025 or 65.15% of the original purchase price 4. 2005 Bobcat Skid Steer brought $15,133 or 60.49% of the original purchase price 5. 2013 John Deere Dozer brought $180,200 or 78% of the original purchase price 6. 1999 New Holland Ford Tractor brought $26,125 or 56% of the original purchase price 7. 2002 Ford F-350 brought $19,001 or 64% of the original purchase price Note: All of the sales mentioned above occurred in 2015-2016. The current NJPA agreement with GovDeals expired in June 2016 and a new RFP was conducted through NJPA. GovDeals was selected and contracted under solicitation RFP#041316. GovDeals has been in business for fifteen years and has over 3,000 government clients. They provide training, advertising, collection of proceeds and remitting the proceeds to the City. The only equipment required of the City is a digital camera which most divisions already are equipped with. GovDeals notifies the City when payment has been made by the Buyer and the Buyer then makes arrangements with the City to pick up their item within ten calendar days. GovDeals remits Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 the proceeds to the City weekly and they also have a $5,000,000 crime policy to protect the City from loss of proceeds. GovDeals has an extremely large market of potential buyers throughout the United States. Currently there are 41,850 registered buyers within a 300 mile radius of Fayetteville. DISCUSSION: The NJPA contract allows the City to set its fee structure. Based on the City's experience with GovDeals, staff recommends maintaining the current fee structure, which has been in place since August 2015, where the Buyer pays the entire 12.5% fee. The 12.5% buyer's premium has not dissuaded buyers from bidding on the City's surplus equipment and vehicles. The NJPA contract will save considerable staff time and money without having to go out with another request for proposal when a competitive solicitation has already been completed. BUDGET/STAFF IMPACT: Revenue is receipted in based on the funding source from which the auction items were expensed from. Attachments: - NJPA Contract #: 041316-GDI - GovDeals Response to the NJPA RFP - NJPA RFP �QIWIt4MEN'r ,yea FORM Eti CONTRACT ACCEPTANCE AND AWARD T � * a.+r PA � NaC[u++il 7uln+ Fnmcre dlh.mcr° Ct a04 (Top portion of this form will be completed by NJPA if the vendor is awarded a contract, The vendor should complete the vendor authorized signatures as part of the RFP response.) NJPA Contract #, 041316-GDI Proposer's full legal name: GovDeals, Inc. Based on NJPA's evaluation of your proposal, you have been awarded a contract. As an awarded vendor, you agree to provide the products and services contained in your proposal and to meet all of the terms and conditions set forth in this RFP, in any amendments to this RFP, and in any exceptions that are accepted by NJPA, The effective date of the Contract will be June 22, 2016 and will expire on June 22, 2020 (no later than the later of four years from the expiration date of the currently awarded contract or four years from the date that the NJPA Chief Procurement Officer awards the Coniract), This Contract may be extended for a fifth year at NJPA's discretion. NJPA Authorized Signatures-. NJULA DIRE—t'—TOR OF COOPE&AVE CONTRACTS AND PROCURE l N.UCr7 iczWAT�tPE—`"'— NJPA EXECUTIVE DIRECTOR/CEO SIGNATURE Awarded on May 19, 2016 Vendor Authorized Signatures: Jeremy Schwartz (NAME PRINTED OR TYPED) Chad Coauette (NAME PRINTED OR TYPED] NJPA Contract # 041316-GDI The Vendor hereby accepts this Contract award, including all accepted exceptions and amendments, Vendor Name �,70y`DecJ(s, Inc. Authorized Signatory's Title P,es'en" r� �1 VEINDOR AUT OR1ZE,D SIGNATURE `— (NA; 1"c PRINTED OR TYPED) Executed on 'V�CJY � 9 , 2016 NJPA Contract T# 041316-GDI