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INDIAN RIVER COUNTY <br />OFFICE OF MANAGEMENT AND BUDGET <br />PURCHASING DIVISION <br />DATE: <br />TO: <br />THROUGH: <br />FROM: <br />April 9, 2014 <br />BOARD OF COUNTY COMMISSIONERS <br />Joseph A. Baird, County Administrator <br />Jason Brown, Director, Office of Management and Budget <br />Jennifer Hyde, Purchasing Manag <br />SUBJECT: Online Auction Analysis <br />BACKGROUND: <br />On April 8, 2014, staff requested authorization to begin selling surplus items via online auction. <br />The Board requested additional information, which staff is pleased to provide. <br />There are many benefits to having the ability to use online auctions. They include reducing Toss <br />of value to items as they sit idle prior to sale, increased visibility to buyers, and more efficient <br />use of staff time during the surplus and sale process. <br />Limit Loss of Value <br />The frequency of auctions held has reduced to about once a year. Lack of use can lead to <br />deterioration and detract from the value. Vehicles that no longer start must be towed to the <br />auction site, with those expenses deducted from proceeds. Vehicles affected by vandalism have <br />required the purchase and installation of replacement parts so they could be driven to the <br />auction site. Items have also been reported missing or stolen while awaiting sale. <br />Selling items as quickly as possible after they are no longer in use can significantly reduce such <br />concerns and lead to higher prices paid for the items. <br />Broader Audience and Greater Draw <br />Online auctions are viewed by buyers all over the country, while live auctions attract a more <br />localized audience. At a live auction, we draw buyers based on the items we and the <br />participating municipalities are selling. Since online auctions represent agencies across the U.S., <br />they are able to draw buyers based on a wider and more diverse catalog of items. <br />As other local agencies transition to online auctions, the catalog of items to draw buyers to live <br />auctions will most likely decrease, as may bid prices. Current methods of disposition for local <br />agencies are shown on the following table. <br />M:\Public Surplus\041514 Agenda - Online Auction Analysis.doc <br />1RR <br />