WASHINGTON–(BUSINESS WIRE)–Aug. 4, 2008–Liquidity Services,
Inc. (LSI) today announced the award of its new Surplus Contract with
the Defense Reutilization and Marketing Service (DRMS), a field
activity of the U.S. Department of Defense (DoD). Following a
competitive offering process, on July 31, 2008 DRMS awarded LSI a
contract to manage the receipt, storage, marketing and disposition of
virtually all useable surplus personal property generated by DoD
installations throughout the United States. The contract has a base
term of three years with two one-year renewal options and LSI expects
to commence operations in approximately 90 days. The new surplus
contract ensures LSI will continue to serve as the primary channel for
the sale of DoD useable surplus personal property in over 500
categories throughout the United States.
Under the terms of the new contract, LSI will pay DoD
approximately 3.26% of the DoD’s original acquisition value (OAV) for
all useable surplus items referred and LSI will retain 100% of the
profit while bearing its own costs for the merchandising and re-sale
of these items. Payment for the property will be made in two steps in
which approximately 2.26% of the OAV will be paid upfront and 1.00%
will be paid 120 days after LSI’s receipt of the property. DoD useable
surplus property will continue to be offered for sale through LSI’s
online auction marketplace, www.govliquidation.com.
“Building on our experience as the exclusive contractor for the
sale of DoD useable surplus property since 2001, we are excited to
continue this relationship and further leverage our online sales and
property domain expertise to significantly improve how DoD useable
surplus property is screened and sold,” said Bill Angrick, Chairman
and CEO of LSI. “As an innovative solution provider, we provide the
DoD with the most effective solution to dispose of DoD surplus
property while protecting national security, reducing costs and
providing a valuable revenue stream to the U.S. Treasury.”
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable
corporations and government agencies to market and sell surplus assets
and wholesale goods quickly and conveniently using online auction
marketplaces and value-added services. The company is based in
Washington, D.C. and has 685 employees. Additional information can be
found at: www.liquidityservicesinc.com.
CONTACT: Liquidity Services, Inc.
Corporate Communications Director
SOURCE: Liquidity Services, Inc.