City and County of Honolulu, Hawaii
Surplus government items, such as scrap metal, equipment and vehicles, take up warehouse space without offering any benefit to government operations. In addition, the process of auctioning these items can be costly
and complicated to manage. The City and County of Honolulu turned to CGI Advantage to help solve this challenge.
The City and County of Honolulu, a trusted CGI partner since 2003, faced tight budgets and realized they could generate more revenue through surplus auctions. However, their contracted auction services provider held only one auction a month and charged a 15 percent auctioneer fee. Honolulu desired a way to handle the surplus auctions themselves without creating increased and unnecessary burden on their staff.
How CGI helped
In 2009, Honolulu decided to use CGI Advantage Vendor Self Service (VSS) to handle its surplus auction needs. VSS allows vendors to register with the Honolulu government and browse surplus auction items. This capability both increases vendor visibility into Honolulu’s offerings and increases participation in the auctions through online bidding. VSS is also tightly integrated with the CGI Advantage ERP suite and automates many processes. Employees are able to record surplus auction items in CGI Advantage and upload attachments such as pictures, spec sheets and additional details. After the close of the surplus auction in VSS, employees are able to use the infoAdvantage module to easily create an invoice and sales receipt and receive prompt payment from the winning bidder.
Honolulu’s VSS project has allowed the government to increase sales of surplus auction items and revenue without creating any increased burden on their staff. To date, Honolulu has collected $4.6 million from surplus auction sales. Honolulu has seen consistent benefits and increased sales with VSS, and decided in 2013 to add towed enforcement and abandoned vehicles to the surplus auctions. Overall, VSS benefits to Honolulu include:
- Avoided an estimated $690,000 in auctioneer fees
- Decreased employee workload
- Decreased surplus item turnaround time
- Increased number of surplus auctions conducted
- Increased competition that creates increased revenue for Honolulu
- Minimized collusion for a more open and fair marketplace
- Automated invoice and sales receipt for faster payment
By using CGI’s built-for-government VSS application, Honolulu is able to increase its revenue, create more positive interactions with vendors and automate its processes.