News | March 10, 2021

New nationwide DOD surplus personal property sales contracts tentatively awarded

By Jake Joy DLA Disposition Services Public Affairs

Two Defense Department Surplus Term Sale contracts were tentatively awarded during a live bid opening held at the Hart-Dole-Inouye Federal Center in Battle Creek, Michigan, March 4.

The contracts cover all surplus personal property approved for public release by the Defense Logistics Agency Disposition Services throughout the continental U.S. and its territories Guam, Puerto Rico, and the Virgin Islands. According to Lead Sales Contracting Officer Erica Nowicki, the contracts could return an estimated $38 million annually to DLA Disposition Services, based on historical pre-pandemic data averages. The contract length is set for an initial two-year term, followed by three optional extension periods of one year each.

Property includes all eligible rolling and non-rolling stock, excluding hazardous material and scrap. The contract stipulates that the contract holder will pay the government a percentage of the Original Acquisition Cost for each item they receive. Iron Planet submitted bids for the minimum bid value and were announced as the Apparent High Bidder for both Defense Department Surplus Term Sale contracts.

Nowicki said the agency released a request for information to gauge industry receptiveness in June of 2020, followed by a pre-solicitation notice in November. The Request for Technical Proposals and draft Invitations for Bid were published Jan. 6. Interested firms had 30 days to respond with their technical proposals. Three responses were received per sale; however, a single qualified firm submitted a final bid for each contract. 

The event was DLA Disposition Services’ first dial-in and web-based live bid opening stream, versus its typical in-person contract award events. Just eight minutes after Commercial Public Sales Branch Chief Wayne Hayward raised the gavel to mark the official start of the auction, an apparent high bid was announced and the auction concluded.

“The intent was accomplished,” Nowicki said of the web-streamed auction. “Leadership and industry were able to observe from remote locations and we were able to adhere to pandemic restrictions and considerations.”

Nowicki said she expected the results to be posted to the command’s sales web page upon final award of the contracts. Screenings and vetting during the pre-award process vary in duration, but she estimated that the new Surplus Term Sales contracts could be awarded and implemented by June 2021.