TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authorization to Participate in the State of Illinois Online Auction Program (iBid) for Surplus Material
Body
Dear Sir:
Authorization is requested to participate in the State of Illinois online auction program for surplus material, known as iBid for a three-year period. The Metropolitan Water Reclamation District of Greater Chicago (District), has the ability to participate under State Statute (5 ILCS 220) Intergovernmental Cooperation Act. The State of Illinois has offered the service to any governmental agency in the state that is willing to participate.
iBid is a competitively bid, custom-developed tool for disposing of surplus material. It provides a means for any member of the general public, with a computer and internet access, to bid on state surplus items, to monitor the bids throughout the auction, and to pay via credit card. It further provides flexibility for the selling municipality to control the terms of the auction-items sold, reserve values, duration of the auction, etc. iBid, through the State of Illinois, is aggressively marketed through local television and other media outlets, creating general awareness among State residents, thus maximizing revenue through the program.
To implement iBid, the District will need to sign an “Interagency Agreement,” with the State of Illinois, allowing the District access to iBid’s credit card payment system, through the State of Illinois Treasurer’s office. Fees associated with the use of iBid are based on a percentage of gross sales, and if there are no sales, then the District would pay no fees. The fees include a 4% royalty fee to Webdata Corp., the creator of iBid for the State of Illinois, a 2% transaction fee to the credit card companies for processing the payments, and a 1.5% administrative fee to the State of Illinois for marketing iBid. These fees will be deducted from the gross sale. The costs to transport the item(s) are the responsibility of the purchaser. Additionally, Webdata Corp. would charge a one time, $500 fee for programming and testing the District’s credit card payment capability.
iBid has been a tremendous success for the State of Illinois. It has produced significant value for the taxpayer by optimizing revenue on materials that otherwise may have simply been scrapped or donated. Examples of other local municipalities currently using iBid include the Village of Riverside, the Village of Oak Brook, and the Village of Sugar Grove. In view of the foregoing, it is recommended that the Purchasing Agent be authorized to participate in the State of Illinois iBid program and sign the interagency agreement on behalf of the District.
Recommended, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 5, 2008. Approved, President Terrence J. O’Brien