Overview: Excess Property Disposition Program
Materials Management Association Workshop
May 15, 2008
Presented By:
Michael Livatino, Program Manager
Vice President, Client Services
Asset Recovery Division, Capital Assets Group
Liquidity Services, Inc.
1920 L St. NW, 6th Floor
Washington, DC 20036
Tel: (202) 558-6210
Cell: (571) 232-5000
Email: Michael.Livatino@Liquidation.com
GS-35F-0496T
Liquidity Services, Inc. - Corporate Overview
Overview:
 Surplus Property disposal solution via online auction of used, salvage and recyclable material
 LSI is more than just a business to business online auction website, it’s a best-in-class marketing & reverse logistics solution
Years in Business: 8 years, IPO’d in February 2006 on NASDAQ as LQDT
 8 LSI-owned, 158 warehouses under management: 1,500,000 sq. ft.
 650 employees
 500 product categories
 35,000 annual outbound shipments to buyers from our warehouses
 91,000 completed online auctions last quarter Q2 2008
 140,000 annual inbound calls and emails to the Buyer Relations Team
 892,000 registered and pre qualified buyers
 80,000,000 annual opt-in email alerts
 32,270,870 annual online searches in our marketplace
 $88,200,000 in property sold online last quarter Q2 FY 2008
 $875,000,000 in completed online auction sales since 2002
Awards for Excellence:
2002
National Auctioneer
Association
Advertising Contest Winner
2003
Department of Defense
Defense Logistics Agency
Vendor Excellence Award
2004
Customer Service
“Exemplary Practices
In Retail”
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2005
Department of Defense
Defense Logistics Agency
Vendor Excellence Award
2007
Silver Medal for Procurement
Excellence to DC Government from
National Association of State
Procurement Officials
Property Management– Objective
Contractor Background:
• Contractor provided all storage, management, personnel, labor, supplies,
materials, transportation and remarketing for excess government
property disposal for all facilities- North Las Vegas and Cheyenne
facilities, Remote Sensing Laboratory, Nellis Air Force Base and the
Nevada Test Site.
• Property types disposed include; Automated Data Processing, Consumer
Electronics, industrial shop machinery, furniture, air conditioners, heavy
equipment, drilling equipment and scrap metal.
• Detailed Documentation: Comprehensive audit trail
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Property Management– Objective
Sub-Contractor Requirements:
– Provide an off-site, sufficiently secure and size warehouse facility to manage
excess property disposition services to include: Pick-up and receiving for all five (5)
contractor managed facilities, transportation, material handling equipment, secure
segregated storage, accountability, internal redistribution, FEDS GSAxcess
property uploads, internal & external agency screening, coordination of transfers
and donations, sale of surplus and scrap property, compliant with Federal CFR
101,102, 109, government regulations, environmental requirements and
documented audit trail of all final disposition activities
• Focus on
– Transportation
– Safety “Zero Accident Performance”
– Segregated Storage
– Re-deployment Access and Traceability
– Security
– Inventory Cycle Time
– Disposal Process
– Detailed Reporting
– Maximization of Revenue
– Client Service “Responsiveness”
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Statement of Work: Sub-Contractor Deliverable
•
Property Removal, Transportation & Secure Storage
– Provide vehicles, trained personnel and secure offsite warehouse facility to store, redeploy and remarket surplus and scrap property
• Coordinated pick-up 2x a week from contractor sites, within 15 days from notification
• LSI vehicles must have specific capacity requirements
• LSI personnel receive safety training and fully understand the client pick-up
procedures
• LSI warehouse sq. ft. allocation was based on historic data provided by Client
• LSI building has internal and external recorded surveillance and central station alarm
• Non-LSI employees entering the warehouse are documented and escorted at all
times
• LSI provides additional segregated ,secure storage area for high value property
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Statement of Work: Sub-contractor Deliverable, continued
•
Property Management
– Receiving, manifest, de-labeling, segregation, screening & redeployment
• Review turn-in documentation for discrepancy’s: quantity, description, etc.
• Check for CFR property compliance
• Received property must be added into LSI inventory management system
(IMS) creating detailed printable files by: turn-in date, exit date, make, model,
task #, pick-up location, serial number, INV #, etc.
• De-label all received inventory of government & contractor markings
• Palletize property and store utilizing assigned “search-by-location” barcode in
IMS and segregated in warehouse
• Access to government and Contractor for random and quarterly inspections of
facility and inventory and documentation
• Provide and on-line inventory management review portal for redeployment
search by: make, model, description, serial number, INV #, etc
• Re-deployed, and sold property has auditable disposition trail
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Statement of Work: Sub-contractor Deliverable, continued
•
Re-deployment
• DOE & NSTec Internal re-deployment screening of property for specified period
– All Internal physical inspections for re-deployment: Personnel must have
valid I.D. are logged into screening book prior to physical inspection
– Property transfer documentation received is verified, hard copy is filed and
IMS is updated with exit date and transfer information, reported month-end.
– Transfer documentation received is verified, hard copy is filed and IMS is
updated with exit date and transfer information.
– Electronic and hard copy paper trail of all internal redeployed property
• External re-deployment of unclaimed property automatically migrates to FEDS
GSAxcess, (Fed and non-fed transfers, ERLE grants, State donations)
– All external physical inspections for re-deployment: Personnel must have
valid I.D. are logged into screening book prior to physical inspection
– Claimed property transfer documentation is verified, hard copy is filed and
IMS is updated with exit date and transfer information, reported month-end.
– Electronic and hard copy paper trail of all external redeployed property
• Property that is unclaimed during the internal and external re-deployment
process automatically migrates to auction sale disposition process
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•
Statement of Work: Sub-contractor Deliverable, continued
On-line Sales Disposition of Surplus and Scrap Property
– Property available for sale is reviewed by the LSI Marketing Department to initiate targeted
marketing campaign to pre-registered & qualified bidders & also determines auction timeline
• Traditional direct mail, print advertising, professional organization publications
• Online keyword purchasing, banner ads, search engine optimization & LSI opt-in email
buyers
– Property Specialist / Manager QC reviews property description details, adds information as
necessary and reviews photographs.
• Develops auction template and promotes auction to “LIVE”
– Property is sold as-is where-is and receives multiple bids and auction “CLOSES”
• Collect revenue via wire transfer, credit card and PayPal
• Upon confirmation of cleared funds, Finance Dept. issues confirmation of funds
• Logistics Dept. issues to buyer and corresponding warehouse an electronic Material
Release Form detailing property sales & buyer information to verify prior to warehouse
property release.
• Property is removed from warehouse and auction is “COMPLETE” IMS exit date
– Scrap metal property is sold based on two methodologies: specialized material and ongoing
operations
• Specialized material (can not be sold into market for its original intended Mfg. use) is sold
via sealed bid or auction, based on material, weight and location
• Scrap from ongoing operations is contracted via re-occurring competitive sealed bid process
allowing for service deliverables and revenue maximization.
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•
Statement of Work: Sub-contractor Deliverable, continued
Reporting and Data Capture Requirements
–
–
–
–
–
–
–
–
–
–
Document client notification of pick-up into IMS: Create Task # date stamp, and location
Review turn-in documentation at pick-up with client and at warehouse
Property Discrepancy Report: within 5 days- client notation and note in IMS
Manifest each item upon receipt at warehouse in IMS include detailed description and capture INV#
Internal & external re-deployment physical inspections logged
Internal & external re-deployed property verified and noted in IMS
Property Cycle-time Report
Safety and Personnel Reports: Injury and illness
Online Inventory Real-time Access and Search Capability to Client into IMS 24/7/365
Monthly Summary Report of Excess Activity
• Redeployment:
– NSTec, DOE, Federal Transfers, ERLE Grants, State Donations, Non-Fed Transfers
• Sales Revenue: Surplus Property and Scrap
– Property: Revenue, Date, ID #, Property Description
– Scrap: Revenue, Date, Ferrous, Non-Ferrous, Lead, Weight
– Monthly Progress Report
• Work Completed, Work Rescheduled, Work Forecast Next Period, Summary of Problem Areas
– Annual Summary Reports
– Quarterly In-Person Operational Review Meetings
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Disposition Process Flow: Simplified Overview
Blue: warehouse status / Yellow: auction status
Truck arriv es
at LSI
Warehouse
Property in
prelim. inspected
and loaded
Warehouse
inspection
creates lot
specs photo
description
Warehouse
Manif est
Item / lot
Entered into
IMS
Truck & team
assigned and
proceeds to
Client pick-up
FMR Rev iew
Automated
Re-deploy Program
1st Internal –
2nd GSAxcess
CAS Property
Redeploy
Rev iew
Item
APPROVED to
NO
sell
CAM promotes auction
“ACTIVE”
Auction
CLOSES
Y ES
QC
CAS sale
Approv al
Y ES
CAS
Specif icaton
rev iew
NO
Y ES
Redeploy ,
Scrap,
Exit Date
in IMS
LSI receives Pick-up
Notification by Client
Sets pick-up date
Warehouse
Assigns TASK #
To Pick-up
CAS/CAM
“WAREHOUSE REVISION”
And prov ides warehouse
item instructions
Specs, Redeploy , Scrap, etc.
Warehouse item
modif ication, photo,
description Re-lot
NO
QC-CAM
rev iew sale
approv al
CAS Auction
Dev elopment
Marketing
Dept.
Adv ert.
campaign
NO
QC
CAS Sale
approv al
Y ES
CAS
ADVERTISING
CAM repost auction
NO
Receiv ed
Bids
Approv e
NO
Y ES
Bidder
payment
request
Receiv ed
Payment
Approv e
Y ES
NO
Warehouse
& buy er
notif ied paid
10
Buy er
Remov es
Approv e
Transaction
“COMPLETE ”
Y ES
Questions ??
Michael Livatino, Program Manager
Vice President, Client Services
Asset Recovery Division, Capital Assets Group
Liquidity Services, Inc.
1920 L St. NW, 6th Floor
Washington, DC 20036
Tel: (202) 558-6210
Cell: (571) 232-5000
Email: Michael.Livatino@Liquidation.com
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