Why is this program important? It simply returns money to the government for other programs. Property that might otherwise be thrown away becomes a valuable resource. This keeps material out of landfills and is a step in the recycling chain. In fact, much of the property sold is scrap metals that are recycled. Steel from Navy ships and spent ammunition brass are all valuable commodities.
Government Liquidation is the sole contractor for the Department of Defense to sell surplus property. Almost all auctions are done on the Internet through the govliquidation.com website.
The property first goes through the Defense Logistics Agency's Defense Reutilization and Marketing Service. There the property is evaluated to determine if it can be reused by the Government before being sold. The property may be given to another military organization, other federal agency, or a state or local agency for use instead of being auctioned off.
If the property is of no further use to the Defense Department, then it is transferred to Government Liquidation (GL) for sale. After receiving the property, GL will photograph the property and make it available on the Internet. When the item is won by a bidder, a 10% buyer's premium is added. This 10% is the fee that Government Liquidation gets for selling the item. The rest of the money is returned to the government.
The billions of dollars every year that is recovered is money that the taxpayers do not have to pay every year. Local and state agencies receive equipment and supplies that they could otherwise not afford. One popular use of surplus equipment is turning old military trucks into fire trucks. They are rugged and dependable for off-road firefighting operations.
The Corvallis Fire Department has saved thousands of dollars by converting surplus military vehicles into wildland fire trucks. One five ton truck built many years ago is still in service.
This program is a win win for everyone. It is a win for the taxpayers, the Government, and local agencies.
At a Glance:
In fiscal year 2008, over 56,000 military units and organizations turned in over 3.5 million items to DLA Disposition Services.-DLA Website
In fiscal 2008, $2.2 billion worth of property was reutilized. Every dollar's worth of property reutilized is a tax dollar saved.-DLA Website
Government Liquidation http://www.govliquidation.com/
Defense Logistics Agency http://www.dla.mil/
Defense Reutilization and Marketing Service http://www.drms.dla.mil/