WASHINGTON--(BUSINESS WIRE)--Jul. 30, 2014--
Liquidity Services, Inc. (NASDAQ:LQDT), a global solutions provider in
the reverse supply chain with leading online marketplaces for surplus
assets, today announced the award of its new Surplus Contract with the
Defense Logistics Agency Disposition Services (DLA) of the U.S.
Department of Defense (DoD) to manage the receipt, storage, marketing
and sale of all usable non-rolling stock surplus property generated by
DoD installations in the United States and its territories. The contract
has a 24-month base term with four 12-month renewal options, including
the option to add international locations and other commodity categories
upon mutual agreement. There is a six-month ramp up period prior to the
effective date of the new Surplus Contract during which time the Company
will adjust its operations to conform to the requirements of the new
contract. Liquidity Services expects to commence operations under the
new contract during the first half of its fiscal year 2015.
The new surplus contract ensures Liquidity Services will continue to
serve as the primary channel for the sale of DoD usable surplus property
in key asset verticals, including: aerospace, audio/video, boats and
marine vessels, communications, field gear, fitness and sporting
equipment, heavy industrial equipment, machine tools, material handling
equipment, medical and dental, test and measurement equipment, and
technology.
Under the terms of the new contract, Liquidity Services will pay DLA
approximately 4.35% of DoD’s original acquisition value (OAV) for all
items referred, including an upfront payment of 0.5% of the OAV and a
backend payment of 3.85% of the OAV after 120 days. Liquidity Services
will retain 100% of the profit from the resale of the property and bear
all of its costs for the transport, storage, merchandising and sale of
the property. DoD usable non-rolling stock surplus property will
continue to be offered for sale through Liquidity Services’ online
auction marketplace, www.govliquidation.com.
“We are excited to build on our 14-year relationship with DLA and to
continue this relationship to securely sell the majority of surplus
assets generated by the DoD across the United States, Puerto Rico, the
U.S. Virgin Islands and Guam,” said Bill Angrick, Chairman and CEO of
Liquidity Services. “Our deep experience in processing and selling over
240 million surplus items for the DoD will enable us to continue to
provide innovative solutions to our agency partner while enhancing value
for these items by integrating our sales with the General Services
Administration’s official government sales portal which will add to our
base of over 2.6 million buyers seeking surplus assets on our
marketplace platform.”
About Liquidity Services, Inc.
Liquidity Services, Inc. (NASDAQ:LQDT) provides leading corporations,
public sector agencies, and buying customers the world's most
transparent, innovative, and effective online marketplaces and
integrated services for surplus assets. On behalf of its clients,
Liquidity Services has completed the sale of over $4.7 billion of
surplus assets in over 500 product categories, including consumer goods,
capital assets, and industrial equipment. The company is headquartered
in Washington, D.C. with global locations across the Americas, Europe,
and Asia. Additional information can be found at: http://www.liquidityservices.com.
Source: Liquidity Services, Inc.
Investor:
Liquidity Services, Inc.
Julie Davis,
202-558-6234
julie.davis@liquidityservices.com
