How to dispose of assets that may have broken-down, become obsolete or no longer economical to maintain is a challenge most county governments and other large institutions have to face, especially under current budgetary restraints. Getting the most out of a new asset while it is still in use, and then realizing the highest return when it is disposed of, has become more important than ever.
The responsibility for disposing of county government surplus falls to the Department of General Services (DGS), which works with other county agencies when it has been determined that an item has been replaced or is no longer needed. In the case of county vehicles, fleet managers make that decision.
“We have a process where items are moved to a central location, and are first offered to other county departments,” said DGS Surplus Property Manager April Coates. “If any other department can use the item, it is made available to them. If not, it is offered for sale.”
Until fairly recently, most surplus items were sold at regular auctions when there was enough going on the block to attract a crowd. But this method involved a lot of staff time and logistics to prepare and conduct the sale, as well as expenses for advertising and auctioneering services. And if the weather were poor or the crowd small, there was no opportunity to make it up.
Beginning in April 2000, the DGS began operating a government surplus store in a warehouse on Cardinal Drive in Leesburg, which is open the first, second and third Fridays, and fourth Saturday of the month. The store offers a wide range of items ranging from to used computers (no hard drives, due to security requirements) to surplus food service items, furniture and exercise equipment at fixed prices.
On-line Auctions
Another big change came in March 2008, when the DGS began monthly on-line auctions using the popular, nationwide Public Surplus Web site (www.publicsurplus.com). These auctions are conducted much like an eBay auction, with formal user registration, lots of photos, down-to-the-last-minute bidding wars, and mandatory follow-through by winning bidders.
“We were looking to expand our options,” said Coates, who initiated the on-line program. “The store is available for local buyers, and the on-line auction available to buyers nationwide.” She adds that the on-line auction is open to bidders 24/7, and that a regular schedule with every 10-day auction starting on the first Monday of the month is followed.
Since the DGS began using the Public Surplus option, other local agencies participating in the on-line auction service include Loudoun County Schools, Loudoun Water and the Ashburn Volunteer Fire and Rescue Department.
For the most recent on-line auction, which concluded on Sept. 18, the DGS featured among its larger assets four retired 2001-2003 police cruisers, a Parks & Rec service truck, the old Sheriff’s Office K-9 unit used to transport tracking dogs, and a 1996 activities bus. The cruisers went for $2,146 to $3,000 (20-30 bids each), while the K-9 unit fetched $3,555 (37 bids). The activities bus–won by a church–took in the highest amount–$7,997.19–with 38 bids.
Unusual items included a Kranich & Bach baby grand piano (sold for $585, with 37 bids) and 151 lecture chairs, offered in lots of 25-26 (no takers).
According to Coates, the DGS and LCPS auctions are scheduled to run concurrently, so that out-of-town bidders can participate in both auctions, but only have to make one trip to Loudoun to pay for and pick-up items they have won.
The LCPS auction that also concluded on Sept. 18 featured several overhead projectors and other AV equipment, as well a few surprises, like the puppet stage ($10.50, with five bids); and a pair of Resusci-Annie dummies (five bids, selling for $6.50.) Top item was a 2002 Chevrolet S-10 pickup, at $3,950 (34 bids), while a John Deere tractor attracted 39 bids, and sold for $3,150.50.
What happens to items that fail to sell?
“If a surplus item (like those lecture chairs) is okay but doesn’t sell, it will be stored for another month,” explained Coates. “It’s often just a case of holding on until the right person comes along.”
Fair Terms
Beyond the on-line photos, there is usually no opportunity to inspect the smaller items before bidding. But potential buyers have a two-hour window the Tuesday before the auction closes to check out the vehicles they may be interested in bidding on, which are kept in the respective agency’s storage facilities. During the showing, auto dealers as well as private citizens visit the storage yard.
Like any online auction, the possibility exists that the winning bidder of a vehicle or other relatively expensive item may simply default. This has caused the DGS has failed to implement a $100 bid deposit on such items, which is charged to a winning bidder’s credit cards if they do not come forward and pay in full. “This helps filter-out the folks who play games on-line,” said Coates. Bidders that default are prohibited from participating in future auctions, and the item is offered to the second-highest bidder.
On all items, it is required that the bidder settle up and remove their acquisitions within five business days after notification.
In addition to disposing of surplus property and getting a final return, Coates says another benefit is that the auctions draw business to Loudoun County, and therefore, providing customer service is important. Indeed, one of the standard procedures used by the DGS is to notify all registered bidders–electronically, of course–of all upcoming on-line auctions.
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