Defense Logistics Agency Extends Scrap Contract

The Defense Logistics Agency (DLA) has exercised the first of up to three 12-month extension options on its scrap property sales contract with Liquidity Services (www.liquidityservicesinc.com), Washington, D.C.

In a news release, the DLA has announced the extension “to be in the best interest of the U.S. government.”

According to DLA, Liquidity Services’ scrap contract will be extended through June 8, 2013. During the extension, the Department of Defense (DoD) says it will use Liquidity Services as its “primary channel to dispose of scrap property that is approved by the DoD for sale to the public.”

Under the contract, Liquidity Services manages the receipt, storage, marketing and disposition of virtually all scrap property generated by DoD installations throughout the United States. Assets are offered for sale through Liquidity Services' online auction marketplace, www.govliquidation.com.

Liquidity Services says the auctions generate more than $35 million per year for the U.S. Treasury.
The DLA recently honored Liquidity Services with the “Recognized Cost Saver” vendor excellence award “for its continued outperformance in efficiently handling DoD's scrap sales, while increasing revenue to the government and significantly reducing operational costs,” according to the news release.

“Each week, we receive an average of 30 million pounds of DoD scrap material which we must identify, process and prepare for sale,” says Bill Angrick, chairman and CEO of Liquidity Services. “Our unyielding focus remains on maximizing efficiency and revenue enhancement on each pound of scrap we receive while also protecting our nation's security and maintaining 100 percent compliance with each sale.”