National Vendor Selected for Sale of Scrap Materials

The Defense Reutilization and Marketing Service awarded a contract for its "Scrap Venture" program to Liquidity Services, Inc., for $5.7 million.

Four bids were received from companies that were invited to submit offers after their technical proposals had been reviewed and found technically qualified. The bids were opened Dec. 16, 2004, and were reviewed and evaluated to determine acceptability, responsiveness and responsibility in meeting the requirements set forth in the Invitation for Bid and Federal Property Management Regulations.

Liquidity's bid gives the company the chance to purchase nearly all scrap material collected by DRMS that is generated within the continental United States and Alaska. Additionally, the company will make a quarterly payment of $.01 cent per pound of scrap material received. Like the commercial program for usable property sales, DRMS will receive 80 percent of the profit once Liquidity has sold the scrap. The term of the sale will be at least 7 years, and DRMS has the option to extend the term to up to 10 years.

Industry suggestions received at the DRMS Scrap Venture Industry Forum were used to develop the SV Initiative, and guidance was offered to potential bidders online at: http://www.drms.dla.mil/sales/scrap/scrap_venture/scrap_venture.html to assist in creating a technical proposal.

A part of the Defense Logistics Agency (DLA), DRMS provides Defense Department units worldwide with critical disposal services for material no longer needed for national defense. DRMS is responsible for property reuse (including resale), hazardous property disposal, demilitarization, precious metals recovery and recycling program support.