2010 NPMA National Education Seminar Myrtle Beach, SC

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1 2010 NPMA National Education Seminar Myrtle Beach, SC

2 Georgia Demographics 9 th largest state population 9,685,744 59,425 square miles $17 billion annual budget 159 counties State government 160 Agencies 130k Employees

3 Georgia Surplus Division of the Department of Administrative Services Self-funded State Surplus Final disposition of all personal property FY-09 Gross Revenue $3.9m Federal Surplus, State Agency for Surplus Property (SASP) Mission FY-09 Gross Revenue $153k Do not manage 1033 or 1122 programs Redistribution (state, local government, non-profit) Public Sales

4 In the old days (about 4 years ago) Three warehouses & administration office 36 FTEs Property was delivered to warehouses Quarterly live auctions equates to 4 turns per year Cash flow inconsistent Couldn t meet mission requirements Limited competition, low prices

5 Internet Sales In 2005, stopped live auctions in lieu of internet sales RFQC Property in warehouses 30 days for redistribution Photos & descriptions available on-line After 30 days, posted to public sale on line Retail stores in each warehouse Required legislation Posted better returns Cost of Goods Analysis

6 What we found STATE SURPLUS PROPERTY OPERATIONS COST Total Items Total Dollars Avg per Item Computers 47, % $ 516, % $ Heavy Equipment % $ 849, % $ 2, Miscellaneous 63, % $ 702, % $ Office Equipment 35, % $ 206, % $ 5.84 Office Furniture 26, % $ 373, % $ Vehicles 2, % $ 3,217, % $ 1, Total Revenue 174, % $ 5,864, % $ Computer (electronics disposal) were 27% of inventory but only 8.8% of revenue Heavy Equipment and vehicles were 1.4% of inventory and 69.4% of revenue All other material constituted 71.5% of inventory and 21.9% of revenue. In the analysis by commodity, only the Administration section (where items are only sold on-site) did not have a negative margin.

7 What we did Developed on-site disposal process Reduced redistribution availability to 5 days Increased disposal authorization based on FMV ( $20, throw it out) FMV between $20 & $50, Buy it now option FMV > $50 internet sale Surplus processes Property Transfer Form 1-2 business days Surplus posts property on DOAS web site for redistribution 5 business days Posts for Public Sale 3-5 business days Buyer pays & pick up property 3-5 business days Average processing time business days

8 What we did Revised electronics disposal policy Electronics Issues Data security Electronics are environmentally hazardous May be disposed of through Transfer, Redistribution, Vendor Return, Sale, Destruction Criteria is different for each disposal option Vendor Disposal Agencies may deliver to vendor Vendor pick-up, transportation billed directly to agency Minimum $25 then $.03/lb

9 What we did What we did Vehicle Disposal E-RFQ for vehicle auction services Pick-up anywhere in state Secured storage Different price for redistribution and sale Agency requests disposal Surplus will have 3 options depending on need: Sell in place through internet Have agency deliver to vendor Have vendor pick-up vehicle

10 Process Overview

11 What we did Converted federal surplus to direct donation Market GSAxcess to donees Screen on line Process requests on-line Donees pick-up from federal facility 100% donation rate, higher allocation standing

12 Finally October liquidated inventory & closed warehouses Reduced FTEs to 8 Sold 11 vehicles, 12 fork lifts and other support equipment Relocated administration staff Improved payment options through PayPal

13 Agencies Issues encountered with Thought we were closed for good Thought we were passing work to them Don t understand direct vs. indirect costs Don t have camera, can t take pictures or other technology issues Untrained staff Public Mixed reaction Sold to 43 states & 9 countries

14 What we are doing now Leaning Processes On-line forms Updating web site Asset information data base Improving data base capability Single entry screen Single line auction Functional staff assignments Increasing training to agency personnel Move information, not material

15 Contact Information: GA Department of Administrative Services Surplus Property Division Steve Ekin (p) Piedmont Avenue Suite 1206, West Tower Atlanta, GA