Please use the following two slides as a template for your presentation at NES.

1. Please use the following two slides as a template for your presentation at NES. Virtual Property Disposal Steve Ekin, CPPA Director, Surplus Division GA Department of Administrative Services

2. GA Demographics • 9th Largest state population 9,687,653 • 59,425 Square Miles • 18th Largest world economy • $19.3 billion annual budget • 159 Counties • State government • 160 Entities • 120k Employees

3. GA Surplus • Division of the Department of Administrative Services • Self-funded • State Surplus • Final disposition of all personal property • FY-11 Gross Revenue $5.7M • Federal Surplus, State Agency for Surplus Property (SASP) • FY-11 Gross Revenue $350k • Do not manage 1033 or 1122 programs • Mission • Redistribution (state, local government, non-profit) • Public Sales

4. Asset Management Lifecycle

5. What is Surplus Property? • Personal Property • Any fixed or movable tangible property • Used for operations • Non-consumable • Benefit extends beyond 1 year • Title determines ownership, not fund source • Capitol asset, acquisition cost ≥$5,000 • Surplus is personal property that is no longer required • Disposal is the final step in asset management cycle

6. In the old days… (about 5 years ago) • Three warehouses & administration office • 36 FTEs • Property was delivered to warehouses • Quarterly live auctions equates to 4 turns/year • Cash flow inconsistent • Couldn’t meet mission requirements • Limited competition, low prices • Conducted COG analysis 2007

7. What we found…

8. Change was inevitable… • Transformation was planned • Migrate federal surplus to direct donation • Closed warehouses in October 2008 • Moved remaining staff to Atlanta in June 09 • Contracted electronics pick-up capability • Vehicle Auction contract • Revised destruction/disposal policy • Revised GA Surplus Property Manual (available in PDF on www.surplusproperty.doas.ga.gov)

9. What we did… • Liquidated inventory and closed warehouses • Reduced FTE to 8 • Sold 11 vehicles, 12 fork lifts and other support equipment • Immediately reduced operating expense by $1M • 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

10. 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, “Retail Sale” option • FMV > $50 internet sale • Revised Electronics Disposal policy • Agencies request disposal authorization • Surplus forwards to vendor • Vendor picks-up anywhere in GA

11. Agency Benefits • Agency controls the process, greater flexibility • Direct vs. indirect expenses • No transportation expenses (time or money) • Reduces storage requirements • Assets are available state wide Average processing time 10-17 business days

12. Issues encountered with agencies… • Agencies 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 • Don’t use other technology, bar code scanners We did a poor job managing the change

13. Disposal Flow Surplus “triages” all requests based on this disposal flow May enter process at any point Options that don’t generate revenue should provide cost avoidance

15. Internet Sales Pros Cons Clear, concise terms & conditions Good photos & descriptions Defaults • 24/7 Selling world wide • Seller controls the transactions • Starting bid • Increments • Reserve • Reduced costs

16. Descriptions & Photos • Descriptions • Complete • Name, make, model, year • Accurate • Don’t guess • Selling on line • Read the terms & conditions • Transactions are “as is-where is” • Do not discuss operation or functionality during inspection or pick-up • Refer issues to Surplus before customer leaves • Date taken out of service • Was this item known to be operational when last in service? • Acquisition cost if known • What kind of damage if any • Engine type –how may cylinders? Motor – Size, Hp, Hours • Fuel type– Gas, Diesel, Propane, Electric • Voltage 110 or 220, Hertz, Single Phase or 3 Phase? • What type of plug does the item have? • Brand, Manufacture, Model, Year, Serial Number • Weight • Size – provide dimensions: height, length and width • Tank size? Number of gallons • Type of tank? Material made of, Fiberglass, Metal, Poly, etc • Generator – What is the KW size? • Is the item skid mounted or trailer mounted? • All data plate information that is available “Think like a customer”

17. Descriptions & Photos • Photos • Uncluttered • Full image • As many as needed • Light behind camera • .jpg format • 400 x 600 pixels (1 mb) • Rename for easy ID • Store in virtual folder • “A picture is worth a thousand words” “Think like a customer”

18. Vehicles • Agency Responsibilities: • Ensures accurate vehicle information • Make, model, year, VIN, mileage • Have original title • Have all available keys • Remove state equipment, markings (decals) and plates • Transportation costs (if applicable)

19. Vehicles • Auto Auction Sale • Fair market value exceeds transportation costs • No storage or security issues • Vendor • May deliver or have picked up • $1.10/mile/vehicle • Inspects vehicle • Takes photos • Can remove markings (bill back to agency) • Make available for donees • Sells to highest bidder at auction • Sell on-site • Transportation costs exceeds fair market value • Agency • Take photos (4 minimum) • Complete Vehicle Inspection Form • Show at scheduled inspections • “Close Sale” • Transfer tile, keys, etc.

20. Electronics Disposal • Electronics Issues • Data security • Electronics are environmentally hazardous • May be disposed of through T, DNS, V, Sale, AD • Criteria is different for each disposal option • Vendor Disposal Contract Requires • Pickup of any accumulation, anywhere in state • 1% or less landfill • R2/RIOS certified • Pay rate/lb. for CPU/laptop and different rate for all peripherals

21. What we are doing now… • Expanding Vehicle Disposal e-RFQ • Adding regional vendors • Vehicle disposal options: • Sell in place through internet • Agency deliver to or have vendor pick-up vehicle • “Scrap” value in place • Leaning Processes • Implementing new hosted data base/disposal software • Providing scanners and cameras • Revising staff assignments and adding personnel • Enhancing training/change management Move information, not material

22. Questions & Answers