2-ADOT Scope of Work Document.pdf

Scope of Work

4. Specific Requirements

4.1 Contractor Minimum Qualifications

The Contractor shall meet the following minimum qualifications:

4.1.1 As the sole and prime Contractor, the Contractor shall provide total responsibility for all requirements contained herein.

Response: We meet all the requirements in this proposal that have been outlined.

4.2.1 The Contractor shall have a minimum of five (5) year’s continuous experience during which time online auction services has been the primary business service.

Response: We have been providing online auction services for over 20 years.

4.3.1 The Contractor shall have successfully performed at least one contract with a public or private agency of similar size to the Agency that has been active for a minimum of two (2) years, with services that are similar to that required by the Agency.

Response: ADOT has had a running contract with our system and has been using it since July 2014. I have also provided reference information of 4 other large agencies that currently use Public Surplus and have used us for at least 2 years.

4. 2 Online Auction System Performance Objectives

4.2.1 The Agency’s primary system performance objectives, listed in order of importance, are:

Performance Objectives Required Desirable

4.2.1.1 Ability to sell all miscellaneous

surplus, vehicles, heavy equipment, lost, unclaimed and confiscated property, real and personal property;

X - We meet this Requirement.

4.2.1.2 Increase revenue generated from

surplus property;

X – In the past two years of using our system ADOT has brought in over $7.8 million in sales revenue. We are confident this amount is more then other online company could provide.

4.2.1.3 Convenient auction participation

for the bidding community;

X-Our system is available to any buyer that is local, national or international and

State of Texas Judy Beers Judy.beers@tfc.state.tx.us (512) 592-0827 State of Connecticut Mae Lo Mae.Lo@ct.gov (860) 713-5792

City of Chandler Janet McFaul janet.mcfaul@chandleraz.gov (480) 782-2421 City of Mesa Yvonne Kayo contactmesasurplus@mesaaz.gov (480) 644-2686 has access to the internet.

4.2.1.4 Ease of program administration

for Agency staff;

X-Our system is very user friendly and has features such as auto bidding, auto award and auto re-list to make it as easy as possible for agency's to use. We are also a software developing company and can create things in the system if an agency requests things.

4.2.1.5 Increased market presence and

bidder base;

X – We have over 900,000 buyers on our system and over 5,000 government agencies that use our system.

4.2.1.6 Reduction in direct and indirect

auction costs.

X – We offer the lowest commission rate in the industry which keeps direct costs low. We also offer an auction technician service which will decrease indirect auction costs if ADOT would like. Information about these services are outlined in the cost proposal section.

4.3 Online Auction System

4.3.1 The Contractor shall provide an online auction system that has the following auction management and auction access control, but is not limited to: Auction Management and Accessontroe

Performance Objectives Required Desirable

4.3.1.1 A fully hosted website that

provides effortless program administration and allows for total control of the auction by the Agency.

X – Our system allows this and and provides the agency to have full administrative permissions and also select the permissions that certain users in the system can have. For instance, an administrator can have all permissions in the system but the administrator may limit the permission of an auction lister from not being able to view reports.

Screenshot of permissions function on confidential information page 6.

4.3.1.2 All hardware, software, servers

along with any/all maintenance and upgrades needed

X-Our company provides all the servers, maintenance and upgrades to use the system. We have two different co-locations as well, one in Provo, Utah and to operate the online auction service.

one in Phoenix, AZ to keep the website running as efficiently as possible in case of an error at one location.

4.3.1.3 Agency ability to manage all

aspects of the auction online which includes, but is not limited to, uploading pictures and descriptions of the items available for sale, setting time frames for the auction, setting minimum acceptable bids, the ability to add or delete items at any time, responding to bidder questions, and blocking default bidders.

X-The agency is in total control of managing all of these items. Our system also allows some additional items such as uploading videos, internal reallocation and pre-qualified bidder groups.

4.3.1.4 Internet connectivity to the

website accessible through industry standard connections, web browsers, and email.

X-Yes, our system is accessible from all internet web browsers and connections.

We also have an app for agency's to use in order to post items if desired.

4.3.1.5 A website that meets industry

standards and best practices for secure use. To set a standard, Hypertext Transfer Protocol with Secure Sockets Layer (HTTPS) or equivalent shall be used.

X-Yes, our system does this and when you go to login you will have see these security measures in place. Screenshot of function on confidential information page 6.

4.3.1.6 A link to the website for Agency

use, that is seamless to the bidding community and allows bidders direct access to Agency auctions with minimal clicks.

X-Our system allows the agency to put a link directly from their website to the current auctions on our website. Buyers can also search for all auctions in an area or search for your agency specific auction with a 3 click process from our login page.

4.3.1.7 A Uniform Resource Locator

(URL) which links to only A specific Agency’s auctions or landing spot.

X-We do provide this access and can also link up your agency's website with our website by using your agency's logo on our webpage.

4.3.1.8 The ability to add, update or

remove Agency logos to each Agency auction home page.

X-Yes, we have this ability and ADOT currently uses this function. Screenshot of function on confidential information page 7.

4.3.1.9 The ability to click the Agency

logo and be directed back to the using Agency’s website.

X-Yes, we have this ability and ADOT currently uses this function.

4.1.3.10 Total Agency administrative

access to the area of the online auction website or Agency account that controls the Agency auctions, with the Surplus Manager or designee controlling the auctions.

X-Our system allows this and ADOT is able to specify which users have surplus manager permissions. There is no limit on the number of users ADOT can have in the system nor the number of administrative users available.

4.3.1.11 The ability for each Agency to

display the Agency’s terms and conditions of sale and the ability to upload or modify the Agency’s terms and conditions of sale.

X-Yes, ADOT currently has these terms on our system and can modify or update them at any time. Every time a buyer goes to bid on an item for ADOT they have to agree to these terms that ADOT specifies.

4.3.1.12 The ability for the Agency to

view a detailed bid history of its auctions at any time during the auction or after it closes.

X-Yes, our system allows you to view all bid history which shows who bid, when they bid and the price of the bid they made. It also shows if a bidder was using a proxy bid during the process.

Screenshot of function on confidential information page 7.

4.3.1.13 Agency shall be able to access to

bidder profile information in order to call, fax or email any bidder that bids on Agency auctions from within the auction site platform.

X-Yes, our system provides the agency with all information about a bidder's profile that shows all of their contact information, any history on their account and allows the agency to rate or block the buyer.

4.3.1.14 User administration access to

control ability to designate who will be allowed to use the auction system and features they can access (i.e. load an auction, release an auction, etc.)

X-Yes, this feature goes along with our permission based function . Screenshot of permissions function on confidential information page 6.

able

4.3.2 The Contractor shall provide the following auction listing features with the online auction system, but is not limited to:

Auction Listing Features Required Desirable

4.3.2.1 The ability to control the number

of items listed with each auction.

X-ADOT has full listing ability and can post any number of items they please.

Our system also offers a “dutch auction” feature that would allow you to post multiple items in one auction. In this scenario the bidder can decide to bid on

1, 2, 3, etc depending on the number of items being offered in that auction.

4.3.2.2 The ability to upload auction

related documents and images, such as specifications and disclosures in PDF, JPG, word or excel format, and videos.

X-Yes, our system provides this full functionality. Screenshot of this function can be found on confidential information page 8.

4.3.2.3 The ability to add or customize

auction data elements such as fields to track inventory/vehicle numbers and storage location. Fields should populate on the auction receipt as well as auction reports.

X-We have an Item Code/Tag section that serves this exact purpose. Our system also has the ability to create customizable fields that your agency requests. Screenshot of this function can be found on confidential information page 8.

4.3.2.4 The ability to configure Agency

account components within the website to accommodate the needs of various Agencies and have the ability to contain individual identifiable Agency designations within the website.

X-Your agency has access to a “Tools – Admin” section that allows you to dictate all components of your listings.

You also have the ability to use a “homepage” feature where you can add your own information you want buyers to know when they look at your auction.

4.3.2.5 The ability to notify the winning

bidder and the Agency by e-mail through the website of the final selling price.

X-Our system sends out automatic e-mail notifications to your agency and winning bidders once an auction closes and it also gives you the ability to resend these e-mails to buyers with one click of the button.

4.3.2.6 The ability for the Agency to

block individual bidders who have defaulted on payment, etc. from participating in an auction.

X-Our system automatically suspends buyers that have a 10% default rate or above. On top of that, your agency has the ability to block buyers from bidding on your specific auctions at any time for any reason you deem appropriate.

4.3.2.7 The ability for communications

(both manual and automatic), instructions and Agency supplied forms to be electronically sent through the website to the successful buyer after payment has been received by the Agency.

X-Once an auction ends we automatically send out a “winning notification” to that buyer and your agency has full control over what that information says. The agency can also manually e-mail the buyer anything additional they would like to through our system.

4.3.2.8 The ability to upload forms and

documents to closed auctions for transparency and audit purposes.

X-Our system allows agencies to go into any closed auctions and upload documents or add notes about a specific auction at anytime in order to aid with transparency and auditing needs. Screenshot of this function can be found on confidential information page 8.

4.3.2.9 The ability to copy previous

auctions.

X-Our system allows an agency to copy an individual closed auction or multiple closed auctions at one time. Screenshot of the function can be found on confidential information page 9.

4.3.2.10 The ability to repost previous

auctions.

X-Our system allows an agency to copy an individual closed auction or multiple closed auctions at one time. Screenshot of the function can be found on confidential information page 9.

4.3.2.11 The ability to upload and hold

items for later auction release.

X-Our system has a held section that allows an agency to create auctions at their convenience and release them for sale when they are ready. There is no timeframe on how long an auction can be in the held section.

4.3.2.12 The ability to load specific

auction end dates and times to the half hour.

X-Our system meets this requirement.

4.3.2.13 The ability to feature an Agency

auction on the website.

X-There are multiple ways to feature auctions on our website. You can “feature” them on the front page of the entire system and “feature” them on your own agency homepage for high value items.

4.3.2.14 The ability to load and edit

multiple locations for sales and the system would retain or have the ability to restore those locations. Locations should be available from a pick list or drop down menu.

X-Our system allows you to have as many pickup locations as you would like and the agency is able to add, remove or edit these locations at any time. These locations are available in a dropdown menu on the auction sell page.

4.3.3 The Contractor shall provide the following auction bidding features with the online auction system, but is not limited to:

Bidding Features Required Desirable

4.3.3.1 Compatibility with, but not

limited to, industry standard personal

X -Our system is compatible to be used on any of these devices and we also have computer (PC) browsers such as, Internet Explorer, Google Chrome, Firefox, Mac OS and industry standard portable device browsers such as Android, Windows and

IOS.

an app that can be used on Amazon Kindle Fire tablets to streamline auction creation processes.

4.3.3.2 The ability to amend or extend

auctions.

X-The agency can amend auctions at anytime and when this happens an addendum is added to the auction for all buyers to see and they are also e-mailed the changes. The agency can also extend auctions at anytime in the process and buyer's receive e-mail notifications of the extension.

4.3.3.3 The ability to provide a period of

time for bidding Questions and Answers.

X-Throughout the entire auction buyers are able to ask questions about the item and the agency is able to respond to these questions at their own convenience.

4.3.3.4 The ability to allow bidders to ask

questions of the Agency through the website and can be answered through the site.

X-Bidders can ask questions and once the agency answers those questions on the website all other buyers will be able to see the answer.

4.3.3.5 The ability to publish questions

and answers to be visible to all registered bidders at the Agency’s sole discretion.

X-Our system allows the agency the ability to “screen” questions before other buyers can see them in case of inappropriate questions.

4.3.3.6 The ability to withhold or not

publish a questions or answer. X-Our system allows agencies to do this.

4.3.3.7 User friendly browse and search

features, to include basic and advanced functionality.

X-Our system allows buyers to search for auctions within a region, state, zip code.

4.3.3.8 The ability for bidders to set up an

interest or watch list specific to Agency auctions.

X-Our system allows bidders to create an interest list based on zip code and auction category. We will automatically e-mail them notification of items posted that meet their criteria to help with the user friendly search. Screenshot of this function can be found on confidential information page 3.

4.3.3.9 The ability to set restrictions on

bidders.

X-Our system allows the agency to setup a pre-qualified bidder auction that would require the bidder to meet certain restrictions your agency sets before they can bid. You can also block bidders at anytime from bidding if desired.

4.3.3.10 The ability to automatically X-Our system automatically extends all extend auctions if a bid is received in the last minute of the auction (i.e. increment of 5 minutes of auction ending).

auctions for 5 minutes if a bidder bids.

And if another bidder bids the auction will extend another 5 minutes until no more bidding occurs. This is built in our system completely in the best interest of the agency to make the most money possible.

4.3.3.11 The capability to add proxy

bidding.

X-Bidders can place proxy bids on an auction at anytime and this limits the amount of time they have to spend on the computer manually bidding on items.

4.3.3.12 The ability to set minimum

reserves and adjust minimum reserve amounts or bids.

X -Our system gives the agency full control of this feature.

Bidding Features Required Desirable

4.3.4.1 An auction end date report.

X-We have 8 standard reports that we provide agencies access to. This report information requested is included in these standard reports.

Screenshot of the reports function can be found on confidential information page 5.

4.3.4.2 A customizable closed auction

report which includes internal reuse transactions as well as all public sales.

X -We have 8 standard reports that we provide agencies access to. This report information requested is included in these standard reports.

Screenshot of the reports function can be found on confidential information page 5.

4.3.4.3 An accounting report showing

payment information.

X-We have 8 standard reports that we provide agencies access to. This report information requested is included in these standard reports.

Screenshot of the reports function can be found on confidential information page 5.

4.3.4.4 A report showing all current

auctions and closed auctions.

X-We have 8 standard reports that we provide agencies access to that shows all closed auctions. The agency can also view all current auctions in a report format by selecting current auctions on the website and pasting the information into an excel file. This information is all exportable.

4.3.4.5 User management reports (for

internal and multi-tiered users).

X-We have a report specific built for internal auctions called our “Reallocation Report”

4.3.4.6 A commodity breakdown, most

popular items, average price, etc.

report.

X-Our system is capable of creating customized reports for our agencies.

We would love to discuss the details of this report if the contract is awarded to provide this function for

ADOT.

4.3.4.7 A report reflecting buyer

history for Agency auctions.

X-We have multiple reports that show the winning bidder on the report and if it was paid for or not.

The agency is able to run any of these reports, download into an excel file and then sort by the “buyer column” and see all history about that buyer's purchases with ADOT.

4.3.4.8 A report reflecting fees

assessed to bidders by the Agency.

X-Our system is capable of creating customized reports for our agencies.

We would love to discuss the details of this report if the contract is awarded to provide this function for

ADOT.

4.3.4.9 The ability to download

reports into various formats from the website.

X-Our system currently allows an agency to download any report into a PDF or Excel file. The agency can also print the report directly from our website.

4.3.4.10 The ability to maintain buyer

feedback ratings to determine buyer record of fulfilling purchase commitments.

X-Our system currently allows any agency to provide feedback and rate a buyer in our system. The more agencies that use this feature the better as it helps everybody keep an eye out for troublesome buyers. Screenshot of the function can be found on confidential information page 9.

4.3.4.11

The ability to create standard and custom monthly reports for Agency use, including but not limited to the following: access on bidder activity, sold items, non-sold items, sales value to the Agency, fees owed by the Agency, and sold asset reports. The sold asset report should lists all items sold by any date range chosen by the Surplus Manager,and include, at a minimum, following:

4.3.4.11.1 ID of item

4.3.4.11.2 Description

4.3.4.11.3 Category

4.3.4.11.4 Starting Bid Amount

4.3.4.11.5 Sold Amount

4.3.4.11.6 Bids received

X -We have 8 standard reports that we provide agencies access to. This report information requested is included in these standard reports.

Screenshot of the reports function can be found on confidential information page 5.

5. General Requirements

5.1 System Registration The Contractor shall:

5.1.1 Not charge a fee, perform a credit check or in any other way, prohibit potential bidders from registering to participate in online bidding unless authorized by the Agency. The Contractor may only require that a potential bidder registers as a user in order to place a bid.

Response: We do not charge any fee for buyers to user our system. The agency is in full control of managing their buyers. However, we do suspend buyers from using our system if they default on over 10% of their auctions they win.

5.1.2 Assist the Agency in setting up accounts for each requesting Department on the website auction system.

Response: Our system has a state of the art departments feature that ADOT is not currently taking advantage of but we would love to help setup. You can have as many departments under one account that you would like. Then, when you are creating an auction you can select the department this auction is for and for accounting purposes you can run reports or searches based on each department individually instead of running the data for eveybody. The City of New York currently uses this feature for over 100 departments and it helps them keep everything stored in one location but in an itemized breakdown per department.

5.2 Training and Support

The Contractor shall:

5.2.1 Assist and train Agency employees on the use and operation of the system. Training may be done online or via telephone at the need of the Agency. In addition, technical and user support shall be made available to the Agency for training issues or problem resolution Monday through Friday (excluding Holidays) between the hours of 8:00 AM to 5:00 PM MST/AZ Local Time.

Response: We provide agency support/training between the hours of 6:00am-6:00pm MST/AZ Local time and provide buyer support/training between 6:00am-8:00pm MST/AZ Local time.

5.2.2 Provide easily accessible and highly responsive technical support and customer service. The Contractor shall endeavor to respond within one-hour, and shall respond within one business day, to all inquiries from the Agency and buyers. In addition, technical issues identified by the Contractor, which have the potential to disrupt business, must be relayed to the Agency within one business day of issue identification.

Response: ADOT is assigned two territory reps that they can reach out to at anytime for assistance. They are assigned a national rep (Zack Corbett) and a local rep (Bradley Milligan).

These reps can be reached via work phone, work e-mail, or cell phone after hours whenever needed.

1. 5.3 Bidder Support

5.3.1 The Contractor shall offer support to assist public users (potential bidders) in the use and operation of the system Monday to Friday (excluding Holidays) between 8:00 AM to 5:00 PM MST.

Contractor support for bidders shall be easily accessible through the Contractors website and the support shall be available to respond to requests or questions that are submitted online or by phone.

Response: We provide buyer support/training between 6:00am-8:00pm MST/AZ Local time. We prefer buyers reach out to our support team via e-mail or our online “chat” feature (screenshot on page ) as that generally receives a much quicker response but buyers can also call into our buyer support team when needed.

5.4 Marketing

The Contractor shall:

5.4.1 Actively market auctions to prospective bidders in order to expand the Contractor’s bidders list.

Response: We continuously market agencies items to increase their bidder presence. We do this in numerous methods and more information about our marketing techniques can be found on page 41.

5.4.2 Offer specialized marketing when needed and requested by the Agency.

Response: On specialized items of value we will also provide marketing of these items in trade magazines and have our marketing team actively call buyers that have bought similar items in the past to direct them to your agency's auctions in order to increase the items sale price.

5.5. Hours and Location of Work

5.5.1 The online auction website shall be available 24 hours a day, 7 days a week, and 365 days a year.

Response: Our system meets this requirement and any website maintenance time to improve the system occurs in the middle of the night with notice given on the website beforehand.

5.6 Monitoring and Security

The Contractor shall:

5.6.1 Provide system monitoring to include, but is not limited to, securing privacy and protecting against fraud, bid rigging, offensive and defensive shill feedback, transaction interference, shill bidding, and bid siphoning.

Response: We provide all of this monitoring and protection for agencies. We ensure that buyers only have one account and do not have access to alter another bidders bid. We have a buyer team solely responsible for catching and suspending buyers that may be performing suspicious activity on our website.

5.6.2 Provide all security systems, anti-virus and firewalls capable of preventing the hacking of any auction information stored on the Contractor’s system or systems.

Response: We provide all security, firewalls and hacking protection for our government agencies. We are solely responsible for keeping and protecting private information for our agency users and buyers.

5.7 Maintenance

5.7.1 The Contractor shall be responsible for all repairs and updates to ensure systems (i.e. hardware, software and/or applications) are current and secure.

Response: We provide all the maintenance, updates and repairs on the system to make sure it is as secure as possible. We also always provide update PCI compliance documentation to the agency if requested.

5.7.2 The Contractor shall notify the Agency 48 hours prior to scheduled system maintenance that may affect access to the online auction process.

Response: We do not provide one-on-one notification of scheduled maintenance to our thousands of users as that would be very time consuming but we do put a notice of maintenance up on the website before maintenance is performed and we perform this maintenance in the evening when auctions are not ending.

5.8 Reporting

5.8.1 The Contractor shall provide all reporting needs through the online auction website and reporting shall be available to Agency personnel on an as needed basis.

Response: We do provide these reporting functions.

5.8.2 Upon request by the Agency, the Contractor shall provide liquidity statistics such as the numbers of buyers and sellers who use the Contractors auction site annually, the volume of transactions that occur within an annual period and the average size of transactions that occur on an annual basis.

Response: We can certainly provide this information to the agency about their auction items and the website if requested.

5.9 Fee Structure

At a minimum, the Contractor shall offer:

5.9.1 An all-inclusive, non-tiered, fixed fee structure in which the Contractor’s fee is a percentage based on the actual amount for which an auctioned item is sold (excluding sales tax).

Response: Our fee structure fits this model and full information is outlined at the end of this 5.9 section.

5.9.1.1 An itemized expense schedule and fee report shall be prepared for each auction.

Response: Our system currently does this and it is all accessible with our reports function.

5.9.2 The option for an Agency pays or Buyer pays auction fees arrangement or a combination of the two.

Response: Our fee structure fits this model option and full information is outlined at the end of this 5.9 section.

5.9.3 No fee charged for items that are internally allocated or transferred to a Donee.

Response: We do not collect any fee for these type of items transferred or allocated.

5.10 Agency’s Responsibilities

The Agency is responsible for:

5.10.1 Creating, monitoring and releasing auctions.

5.10.2 Monitoring and coordinating a response to auction questions that are submitted through the website.

5.10.3 Coordinating the pick-up, payment and recording of all required Federal and state documents and Motor Vehicle Division (MVD) permitting.

5.10.4 Collecting payment from buyers for sold auction items and issuing a payment receipt to the buyer for purchased items.

5.10.5 Remitting payment to Contractor for sold auction items or miscellaneous services provided as stated in the contract.

Response: We accept the agency's responsibility to all the items above outlined in section 5.10.