Scope_of_Services.pdf

City of Palo Alto – RFP 184795 Page 1

ATTACHMENT B - SCOPE OF SERVICES

RFP184795 Auction Services for Vehicles and Equipment

I. Project Description

The City of Palo Alto is seeking proposals from companies specializing in the auctioning and remarketing of automobiles, trucks, trailers, construction equipment, and miscellaneous automotive items.

The City maintains a fleet of approximately 554 vehicles/equipment, which are listed in Attachment A – Current Vehicle and Inventory List.

The City reserves the right to select multiple auctioneers based on their area of expertise, as shown in their proposal.

II. Project Objective

The City’s objective is to establish a contract for as-needed services related to the disposal of surplus City vehicles and/or related equipment, in accordance with the regulations stipulated in Section 2.31.010 of the Palo Alto Municipal Code; and to generate revenue for the City by the sale of said vehicles and equipment.

Additional Services: Periodically, the City will also be interested in auctioning off surplus automotive shop equipment, parts, and supplies. The requirements for marketing, advertising, preparation, and after sale administration will apply to these items as well.

III. Scope of Services

A. The contractor will conduct live auctions of vehicles and equipment at the

Contractor’s permanent auction facility located within the nine-county Bay Area. This is in the City’s best interest in order to obtain the highest resale value, and limit transportation costs. These auctions will be conducted at least six (6) times annually. Alternatively, auctions of large trucks and specialized equipment that are too large to cost effectively transport, may be conducted over the Internet (see item M. below)

B. The Contractor will be required to advertise auctions containing City vehicles and equipment, valued at $5,000 or more, at least once within fifteen (15) days of the auction. This is also applicable to internet-based online auctions. This advertising effort will be conducted in all of the following formats:

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1. Newspaper advertisements placed in at least four (4) major newspapers circulating in the nine-county Bay Area, and one major newspaper in the Sacramento metropolitan area.

2. Direct mailing to the Contractor’s active and prospective bidders (or email announcements for Internet-based auctions).

3. Auction announcements posted on the Contractor’s auction Internet website.

At a minimum, this advertising will announce the date, place, and time of the auction, and that the auction includes vehicles and equipment being sold on behalf of the City. Proposals will include a listing of the newspapers in which the proposer normally advertises, the number of active and prospective bidders on the proposer’s mailing list, and the Internet URL of the proposer’s auction website.

C. In addition, for auctions of City vehicles and equipment, the Contractor will post an individual listing for each vehicle to be sold on their auction website. These listings will be available for potential buyers to review within fifteen (15) days of the auction date. The listing will include the auction location, a general description of the vehicle, and at least four (4) photographs showing the front, sides and rear of vehicle. At a minimum, the description will include the manufacturer, model, year, odometer/vehicle hour reading, and an indication of the vehicle’s condition. The description will also include a summary of the vehicle’s major options. The City’s Project Manager, Terry McMahon, will be notified via email once vehicles/equipment have been listed, and a link to each listing will be included.

D. All costs related to the conduct of any auctions of City property shall be borne by the Contractor, and will be factored into the commission rate.

The proposal will show the commission rate, and will include a listing of rates and fees for transportation, “delogoing”, emissions and safety inspections, detailing, and other services. Contractor shall bear or collect any applicable sales taxes and fees from the buyer. The Contractor shall comply with all state, federal, county, and local laws, and regulations as they pertain to the sale of property.

E. When required, Contractor shall hold licenses required to sell certain types of property. Proposers will include a listing of any applicable licenses they hold with their proposal.

F. Employees, officers, and agents of the Contractor shall not be authorized to bid on City of Palo Alto property when it is auctioned.

G. Contractor shall maintain active and prospective bidder lists and will notify individuals with addresses within Palo Alto of any auctions that include

City of Palo Alto – RFP 184795 Page 3 property from the City of Palo Alto. This is also applicable to internet-based online auctions. Acceptable forms of notification include U.S. Mail, e-mail, fax or telephone. The City of Palo Alto shall forward all auction inquiries and prospective bidder information to the Contractor for list inclusion. The City of Palo Alto shall not provide, or maintain any lists on behalf of the Contractor. Obtaining a residential mailing/contact list can be done so online through various websites. The purpose of this requirement is to notify Palo Alto residents/tax payers of City vehicles/equipment being sold. The City is not using this requirement as an additional marketing tool.

In lieu of mailers being sent to all residents of Palo Alto providing notification of City vehicles/equipment being sold, the City will accept classified listings with The Daily Post, a free newspaper in Palo Alto, or classified postings to paloaltoonline.com identifying that the sale is on behalf of the City of Palo Alto.

H. REQUIRED RECORD KEEPING

Contractor is required to provide the following records to document the receipt and disposition of all property it sells on behalf of the City:

1. Detailed consignment sales re-cap or summary sheet containing property description, lot number, City of Palo Alto vehicle number, complete vehicle identification number, sales price, auctioneer commission reimbursement, service fees, and net proceeds to the City of Palo Alto.

2. Individual lot sale reports, which document lot information (if different from that of bidder). Lot information will include an item description, auction date, lot number, and sales price. Bidder information will include the name, address and phone number of the buyer. All sales reports will show the City of Palo Alto as the consignor. Items 1. And

2. will be provided within ten (10) working days after auction completion.

3. Record keeping for property abandoned to contractor under Section E shall be limited to maintaining lists of abandoned property received.

4. Contractor shall, upon request, provide evidence of advertising for auctions containing City vehicles and equipment, and/or property with an estimated value of $5,000 or more. This evidence will consist of proof of publication in the newspapers noted in B. above. Advertising must have been placed within fifteen (15) days of when the auction is to be held.

5. The books, records, documents, and accounting procedures and practices of the contractor relevant to this service shall be subject to inspection, examination and audit by the City of Palo Alto.

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I. Contractor will be capable of transporting and storing vehicles and equipment, upon request, at any time during the year, whether or not an auction is scheduled during that particular month. The Contractor will transport running and disabled vehicles and equipment from the City’s Municipal Service Center (MSC) to the auction facility. Contractor will be capable of transporting any of the vehicles and equipment listed in Attachment A. Rarely, equipment may be too large to be cost effective to transport. In these cases, arrangements may be made for buyers to inspect the equipment at its location within Palo Alto. The auction of oversize equipment will then be conducted in the normal manner, at the regular auction facility. Proposals will include a description of how vehicular and non-vehicular property shall be accepted throughout the year, and the cost to tow or transport various types of vehicles and equipment from the MSC to the auction facility.

J. Contractor will ensure that the City property stored at the auction facility is secured and protected from damage and vandalism. If a lot does not sell during an auction, the Contractor will store it, free of charge, until the next scheduled auction. No storage charges will apply unless City staff requests an extended storage beyond the date of the next scheduled auction (as may occur if a particular item does not meet the reserve price).

K. Proposals will include a description of how the Contractor will conduct auctions. Include details of pre-auction, auction and post-auction activities involving preparation of equipment and property, the live auction process, and the requirements for removal of sold property from the auction facility.

Proposals will also include a description of how prospective buyers are notified of sales by means other than those required in B and G, if any.

L. Contractor will be responsible for preparing and submitting a “Release of Liability” form for each vehicle, immediately upon sale.

M. Proposers should indicate whether they use Internet-based online auctions for vehicle and equipment sales. If proposers do offer this service, the proposal should include a description of how online auctions are conducted.

N. Proposals will include a description of how unsold property will be handled.

O. Auction Results (provide in Chapter 8): The evaluation of proposer qualifications will include a review of recent auction results that each proposer has achieved, per the sample list provided as Attachment G.

Ideally, proposers will be able to show results for the vehicle and equipment listed; however, if substitutes are used, they must be in the same class (i.e., mid-size sedan); of a comparable model; within one year

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(older or newer), and of similar mileage (or hours). If substitutes are used, provide the year, manufacturer, model, description, meter at sale, and the low, average and high sales prices as noted in Attachment G.

IV. Company Background and References (Provide per Section 5.3, Chapter 3 of the RFP)

A. Primary Contractor Information

Vendor must provide a company profile. Information provided shall include:

• Company ownership. If incorporated, the state in which the company is incorporated and date of incorporation.

• Location of the company offices.

• Location of the office servicing any California accounts.

• Number of employees both locally and nationally.

• Name, address and telephone numbers of the vendor’s point of contact.

• Company background/history and why vendor is qualified to provide the services described in this RFP.

• Description of web services and use of web auction sites, if any, used by vendor.

• Length of time vendor has been providing services described in this RFP to the public sector. If vendor has no public sector experience, provide private sector information. Please provide a brief description.

• Resumes for key staff to be responsible for performance of any contract resulting from this RFP.

• Vendor’s bank of record and vendor’s Dun and Bradstreet number.

B. Subcontractor Information

1. Identify specific subcontractors and the specific requirements of this RFP for which each proposed subcontractor will perform services.

2. Provide the same information for any subcontractors as is indicated in Section IV(A) above for the vendor as primary contractor.

3. References as specified in Section C below shall also be provided for any proposed subcontractors.

C. References

Vendors should provide, at a minimum, three (3) references from similar projects performed for local government clients within the last three years.

Information shall include:

• Client name

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• Project description

• Project dates (starting and ending)

• Technical environment

• Client project manager name, telephone number and e-mail address.

V. Cost and Payment (Provide per Section 5.8, Chapter 8 of the RFP)

A. Vendors must provide a fee schedule detailing all fees charged to both the buyer/s and the City of Palo Alto for City vehicles and equipment (Attachment E – Schedule of Rates).

B. The vendor is to make full payment to the City of Palo Alto no later than ten (10) working days from the date of the auction.