DoD Excess & Gov Planet

[DPG]

Hello All,
We’re looking for some input on DoD excess, and perhaps you have some insight.

We have been buying DoD surplus for years, certainly from GL and even during the DRMO sealed bid process before that. (yes the good old days)

So when GP won the non-rolling stock contract in 2017 we expected to see some of that material on their website sometime around Q2, but as of yet we haven’t seen much other than gen-sets, medical supplies, and other misc, certainly no aviation related parts and definitely no parts and components that we know the DoD is sending to excess.

So where is it going? Is Ritchie Bros simply offering it to a small list of clients in a sealed bid type process?

We’d appreciate any thoughts you may have,

 

[NDT]

See the other thread on this subject. In a nutshell, GP is stockpiling the inventory while they set up the retail quantity marketing strategy designed to realize profit previously enjoyed by businesses such as yours.

 

[DPG]

See the other thread on this subject. In a nutshell, GP is stockpiling the inventory while they set up the retail quantity marketing strategy designed to realize profit previously enjoyed by businesses such as yours.

That business is based on speculation, it’s a buy, hold, wait and hope situation. We have parts purchased in the mid-2000’s that we’re just now receiving RFQ’s for and in fact is specifically why those parts are purchased for pennies on the dollar, explicitly because most of the inventory never sells.
I find it hard to believe that’s their business model, if so the best investment would be to short RBA. Perhaps the truth will be in their Q3 earnings.

 

[Retiredwarhorses]

Gotta say, I’ve wondered the same as of recent, I mean...what junk, Opening prices are just downright laughable.
seems it would be advantageous for GP to distribute something as to there ultimate plan on how they expect this model to work. At this point, I’m starting to miss GL....not on the Rolling stock, just the non-rolling stock.

 

[DPG]

Gotta say, I’ve wondered the same as of recent, I mean...what junk, Opening prices are just downright laughable.
seems it would be advantageous for GP to distribute something as to there ultimate plan on how they expect this model to work. At this point, I’m starting to miss GL....not on the Rolling stock, just the non-rolling stock.

I agree and as an example they have been listing, and relisting the lot of 35 Harris RF-5980-SA001 in CC B w/ a starting bid of $68.57 ea. plus a 10% transaction fee.
Don’t they understand these can be purchased for about $50 in the same condition on the surplus market?
I certainly hope we see the balance of the non-rolling stock assets soon, especially since the DLA specifies “sales must be open to the general public” in the contract with Ritchie Bros, I guess we’ll see in the coming months..

 

[NDT]

Don’t they understand

NO. They know all about auctioning yellow iron. This is their "first rodeo" in the surplus arena and boy does the inexperience show.

What drives me nuts is them mixing in the state/local crap with the mil. None of us are looking for ragged out white pickups and rusted bush hogs.

 

[simp5782]

I like how a MI Jack 850R gantry crane that is worth alot of money starts the bidding at $10 and sells for $3100. Pfft. if only I could get one home.

 

[DPG]

I like how a MI Jack 850R gantry crane that is worth alot of money starts the bidding at $10 and sells for $3100. Pfft. if only I could get one home.

Personally, I think they’re selling the assets to a select group of buyers in a sealed bid process, or perhaps they’re listing the parts on ILS through an affiliate, (these are all only guesses) however only time will tell because at some point if those DOD assets don’t appear on the site, it will be obvious they’re not making them available to the general population, which I’m certain is in violation of their DLA contract.
I guess we’ll see.

 

[drivebymashing]

I've been a buyer on Govplanet for about 3 years. I quit going to their site. Holding onto stock so they can get more out of it.. supply in demand I get that. They want big money. Im out..

 

[DPG]

I've been a buyer on Govplanet for about 3 years. I quit going to their site. Holding onto stock so they can get more out of it.. supply in demand I get that. They want big money. Im out..

They certainly appear to lack a basic understanding of the DoD excess marketplace.Just this morning I saw a listing for a SCRAP Joy Manufacturing IR290-230D2444 Vaneaxial Fan with a STARTING BID @ $3,025-This is scrap and is likely worth $150 for scrap value only (CC H) and I’m sure when it doesn’t sell they’ll relist it, again and again.
I continue to believe a large portion of the DoD excess is being sold in a sealed bid process outside of the GP website, they’re already 25% into their GLA contract and generally speaking have not listed any new surplus outside medical and amo cans.
Q3 ends in 3 weeks and Ritchie Bros. will report earning shortly after. If they are indeed holding these assets for future sale, that should certainly appear on their 12/31/18 Balance Sheet.I guess we’ll see.

 

[pontiac62]

What assets are not appearing on gp site. Not a retailer or business person. What did gl sell that gp isn’t yet?


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[Gunzy]

I haven't seen any real aviation or vehicle parts like used to be on GL. Also, all opening bids have gone up and most of us that used to buy for personal use are priced out of the Mil Surplus market. I wonder what is going to happen to the surplus stores in the future if they are unable to get product at a reasonable price to make a profit. I guess time will tell in the end. I too am missing GL for non-rolling stock.

 

[porkysplace]

I haven't seen any real aviation or vehicle parts like used to be on GL. Also, all opening bids have gone up and most of us that used to buy for personal use are priced out of the Mil Surplus market. I wonder what is going to happen to the surplus stores in the future if they are unable to get product at a reasonable price to make a profit. I guess time will tell in the end. I too am missing GL for non-rolling stock.

They will disappear just like the brick and mortar stores that E-bay, Amazon, Walmart online ect . put out of business . It is the nature of the internet ,GP is now the Amazon of military surplus.

 

[sandcobra164]

I'm just happy to think of happier times. $1,000 dollar Deuces that ran with a jump start was the norm. 10 years ago. That all dried up. What GP is doing is replacing the middle man and attempting to realize that profit for themselves. I posted on another thread concerning this topic but I'll summarize. They saw an opportunity, underbid the competition and are charging batteries and making equipment run again before they list it for auction. Running trucks/generators, etc. posted in the auction link obviously bring higher prices. They have the lucky position of having the equipment signed over to them from the Government just like GL did. They promised a higher return and as far as I've witnessed, they are delivering on that. I don't like the higher prices either.

 

[Gunzy]

They will disappear just like the brick and mortar stores that E-bay, Amazon, Walmart online ect . put out of business . It is the nature of the internet ,GP is now the Amazon of military surplus.

I hope it comes back to bite them in the rear. If I want one of something the surplus store was my source. Now I'll have to buy 100 at retail? Nope, not happening.

 

[simp5782]

Isn't the cost of everything going up anyway? Or is it just me? Paychecks don't get any bigger. but even surplus prices are up.