Buy cheap but dirty cars, fax machines from Chicago's online surplus auction
If Chicago's government were to hold a garage sale, what sorts of junk would find its way onto the lawn? With the city's online surplus auctions, shoppers can check out all the local government's used goods,
the sale of which raised over $3 million for Chicago in 2011. No, unfortunately there aren't any VHS tapes of Sister Act 2: Back In The Habit-but if there had been, the auctions would have surely been much more
lucrative. The items currently up for sale range from microfilm machines to limestone slabs to used vehicles. In the past, the city has also sold street banners from the areas surrounding Wrigley and Soldier Fields,
toner for copier machines, and all-terrain vehicles.
At the same time, as the auctions promote recycling for a greener government, the sale of the used goods also saves the government a significant amount of money. Last year's profits were double what the city's
auctions raised in 2010, forming part of Mayor Emanuel's strive to better balance the budget. Ron Swanson would be proud.
City makes millions from its old junk
Hoping this year's online auction tops $4 million.
By Sandra Guy - Business Reporter sguy@suntimes.com
City Officials are doing what frantic penny-pinchers have done for years: They're searching every nook and cranny for old fax machines, abandoned SUVs, unsold sports banners and other surplus property to
auction online.
Their efforts, per Mayor Rahm Emanuel's do-more-with-less edict, collected $3.6 million in winning bids in 2011 - double the$1.8 million take in 2010.
City officials now aim to collect $4.6 million from the online auctions this year by finding even more junk to get rid of.
"We started an aggressive outreach campaign when I said, "If you're not sitting on your chair, I'm going to sell it," said Jamie Rhee, the city's chief procurement officer in charge of the process.
"When we can reuse something, we will, but when something is outdated and we can make money off of it, we're going to sell it."
The city hired Public Surplus, a Provo, Utah-based Internet auction company that specializes in government auctions, to conduct the auctions. Public Surplus collects 6.75 percent of the take up to $1
million, after which it collects 6.25 percent. The city held 661 auctions of surplus and abandoned equipment last year.
The most surprising winning bidder was a South American government that wanted old stand-alone fax machines, said Rhee, an 18-year city government veteran who worked as general counsel for the O'Hare
Airport modernization program before being named chief of procurement two-and-a-half years ago.
Other winning bids included $20,105 for a 2008 Mercedes Benz SUV; $18,900 for a 2008 Land Rover; and $1,700 for "Walter Payton-Sweetness" Chicago Bears banners. Bidders fought for 330 Xerox copier
toners, which sold for $913, and a Black & Decker table saw, which went for $26.
Mayor Rahm Emanuel announces $3.6 million from online auctions of surplus materials in 2011
City Nearly Doubles Revenue from 2010, $4.6 Million More Expected in 2012
CHICAGO - Mayor Rahm Emanuel announced today that the Department of Procurement Services (DPS) collected $3.6 million in 2011 from selling City surplus materials through its online auction system,
early twice the amount collected in 2010. The online auctions allow the City to sell unneeded surplus possessions including fax machine toner, scrap metal, old vehicles parts, and street sweepers.
"It is our responsibility to the taxpayers of Chicago to leave no stone unturned or old fax machine unsold when it comes to bringing in new revenue to the City," said Mayor Emanuel. "For each dollar we
bring in through our online auction system, it's one less dollar we have to find from someplace else which allows us to preserve critical City services that Chicagoans depend on. I commend the Department
of Procurement Services for its aggressive pursuit of items that can be sold online. It is an example of the type efficient, ingenuity that we will continue to strive for every day."
Through increased coordination and outreach between City departments, DPS doubled the amount it collected in 2010 from $1.8 million to $3.6 million. In addition, DPS has projected that it will increase
that amount in 2012 for a total of $4.6 million in revenue. Already in the first month of 2012, DPS auctions have generated over $90,000 in new revenue.
Recently successful auctions include 450 tons of scrap metal, several pieces of heavy equipment and a set of decommissioned Micro-Turbine power generators. Most auction items are sold at the City's
salvage yard, though some equipment is auctioned onsite at the City facilities where they were used. DPS also works internally with City departments and Sister Agencies to identify any items that still
may have potential use to the City. DPS has sold surplus items to buyers all over the United States as well as South America, Mexico, and Canada. Anyone interested in purchasing surplus items should visit
the City's website at www.cityofchicago.org/procurement or call DPS at 312.744.4900.