TITLE
Recommendation to adopt Specifications No. RFP FM16-125 and award a contract to CHP Enterprises, dba Ken Porter Auctions, of Carson, CA, to provide auctioneering services, for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a citywide contract with Ken Porter Auctions (KPA) to provide auctioneering services. In accordance with City policies and procedures, the City is authorized to dispose of surplus City assets by public auction. The City, including the Water and Harbor Departments, regularly dispose of surplus City-owned vehicles, equipment, and other miscellaneous items using this method when they have reached or exceeded their useful life expectancy, or if they are no longer needed to provide City services. Vehicle retirements are evaluated through the City’s annual vehicle replacement plan that is overseen by the Financial Management Department (FM), Fleet Services Bureau.
Under this contract, buyers pay a 15 percent fee directly to the auctioneer to cover the cost of services. The auctioneer then rebates a percentage of the sale price to the City. The percentage rebate, which ranges from 1 to 10 percent, is based on a sliding scale, and varies with the amount of the individual sale.
A Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on June 3, 2016, and 1,203 potential proposers specializing in auctioneer services were notified of the RFP opportunity. Of those proposers, 16 downloaded the RFP via the City’s electronic bid system. The RFP document was also made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing
. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 22 l...
Click here for full text