SALE OF GOVERNMENT PROPERTY
AMENDMENT OF INVITATION FOR BIDS/MODIFICATION OF CONTRACT

[AMENDMENT TO INVITATION FOR BIDS NO.

2. EFFECTIVE DATE
PAGE 1 OF 3

SUPPLEMENTAL AGREEMENT NO.: 14

PAGES

3. ISSUED BY

DLA Disposition Services
National Sales Office

74 North Washington Avenue
Battle Creek, M) 49017-3092

[NAME AND ADDRESS WHERE BIDS ARE RECEIVED

5. im] AMENDMENT OF INVITATION FOR BIDS NO. (See Item 6) | DATED

LL] mon iFicaTion OF CONTRACT NO. (See item 8)

DATED

6. THIS BLOCK APPLIES ONLY TO ‘AMENDMENTS OF INVITATIONS FOR BIDS
Item 9. Bidders must acknowledge receipt of this amendment unless

The above numbered invitation for bids is amended as set forth in
indicated otherwise in item 11 prior to the hour and date specified
following methods:

(a) By signing and retuming copies of this amendment;

in the invitation for bids, or as amended, by one of the

(b) By acknowledging receipt of this ‘amendment on each copy of the bid submitted; or

(© By separate letter or telegram which includes a reference to the invitation for bids and amendment number.
FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE ISSUING OFFICE PRIOR TO THE HOUR AND DATE
SPECIFIED MAY RESULT IN REJECTION OF YOUR BID. If by virtue of this amendment you desire to change a bid already submitted,

such change may be made by telegram or letter, provided such telegram or fetter makes reference

amendment, and is received prior to the opening hour and date specified.

to the Invitation for bids and this

7. ACCOUNTING AND "APPROPRIATION DATA (if required)

@. THIS APPLIES ONLY TO MODIFICATION OF CONTRACTS
‘This Supplemental Agreement is entered into pursuant to authority of

Contract # 99-4001-0004

9. DESCRIPTION OF AMENDMENTIMODIFICATION (Except 2s ‘provided below all terms

Whereas Contract

aad Conditions ofthe document referenced in item 5 remain in ull

force and effect)

99-4001-0004 was entered into on June 9, 2005 by and between the United States of America, hereinafter referred to

as the GOVERNMENT, and LIQUIDITY SERVICES, INC, hereinafter referred to as the CONTRACTOR, and DOD Surplus, whereas the
contract involved property as described in invitation for Bid (IFB) 99-4001.

Contract performance is 7 years and three one year option periods.

‘THE HOUR AND DATE FOR RECEIPT OF BIDS (D1 isnot ExtenbeD.
(LOCAL TIME) DATE

(FIs exrenbe UNTIL

O'CLOCK M

70. BIDDERIPURCHASE NAME AND ADDRESS (include ZIP Code)
DOD Surplus LLC

45051 N. Kierland Blvd., Third Floor

Scottsdale, AZ 85254

ORIGINAL AND oO

11. im] BIDDER IS NOT REQUIRED TO ‘SIGN THIS DOCUMENT

Oo PURCHASER IS REQUIRED TO ‘SIGN THIS DOCUMENT | ‘AND RETURN
COPIES TO THE ISSUING OFFICE

42. SIGNATURE FOR: IDDER/PURCHASER,

75. UNITED STATES OF ‘AMERICA

BY SIL j = SO” VT Bx
(Signature of person authorized to sign) (Signature of Contracting Officer)
<S-NAME AND TITLE OF SIGNER (Type or prin) TEDATE SIGNED | 16. NAME OF CONTRACTING OFFICER (Type W) 7. DATE SIGNED
Fimethy Daniel J :
yp DPE aaTigas 3 Tow ol |= conard Cly Ae g Jiu 215”

"AUTHORIZED FOR LOCAL REPRODUCTION
Previous edition is usable
et By

STANDARD FORM 414D (REV. 1-94)
Prescribed by GSA FPMR (41 CFR) 101-453,


CONTRACT NUMBER 99-4001-0004
Supplemental Agreement 14
Page 2 of 3

WHEREAS, Article Sixteen, Section 3 states in pertinent part that:

(A) Calculate Contractor Net Worth Allocation.

Purchaser shall calculate the amount of the "Contractor Net Worth Allocation" as Operating Net
Worth multiplied by twenty percent (20.00%).

(B) Calculate DRMS Net Worth Allocation.

Purchaser shall calculate the amount of the "DRMS Net Worth Allocation" as Operating Net
Worth multiplied by seventy-eight and twenty one-hundredths percent (78.20%).

(C) Calculate KGP Net Worth Allocation.

Purchaser shall calculate the amount of the "KGP Net Worth Allocation" as Operating Net
Worth multiplied by one and eighty one-hundredths percent (1.80%).

and, WHEREAS, the contract does not include a provision for the implementation of a
replacement contract, which requires a minimum 3-4 months to complete.

and, WHEREAS, the Government and Contractor have entered into a negotiated sale which
includes a provision for the implementation of a replacement contract.

and, WHEREAS, the contractor has determined the wind-up this contract with the negotiated
contract being executed at the same time would be unmanageable. This is due to the fact that it
would require two inventory tracking systems to segregate and report proceeds from property
received before and after the commencement of the negotiated contract. Setting up another
inventory tracking system would be time consuming and expensive. In addition, tracking indirect
costs associated with processing two inventories would be onerous. This would also require the
contractor to sell the property thru different lots which may not be optimal to maximize revenue.
The separate inventory systems would require two unique weight tickets.

and, WHEREAS, the contractor has formulated a payment plan for the remaining property
referred under this contract, based on an inventory turnover rate that is equal to 51 days on
average, that ensures KGP will receive appropriate distributions for this inventory.

NOW, THEREFORE, it is mutually agreed between the parties hereto to this modification that
Article Sixteen, Section 3 shall be changed effective with the June 2015 Monthly Distribution
Statement as stated below:

(A) Calculate Contractor Net Worth Allocation.

Purchaser shall calculate the amount of the "Contractor Net Worth Allocation" as Operating Net
Worth multiplied by thirty-five percent (35.00%).

(B) Calculate DLA DISPOSITION SERVICES Net Worth Allocation.

Purchaser shall calculate the amount of the "DLA DISPOSITION SERVICES Net Worth
Allocation" as Operating Net Worth multiplied by sixty-five percent (65.00%).


CONTRACT NUMBER 99-4001-0004
Supplemental Agreement 14
Page 3 of 3

(C) Calculate KGP Net Worth Allocation.

Purchaser shall, for the month of June 2015, deduct an amount from the Contractor Net Worth
Allocation equal to 100% of 1.8% of the Operating Net Worth (amount available for
distribution) and pay this amount to KGP. Purchaser shall, for the month of July 2015, deduct an
amount from the Contractor Net Worth Allocation equal to 94% of 1.8% of the Operating Net
Worth (amount available for distribution) and pay this amount to KGP. The July 2015
distribution is the final payment to KGP for property referred under this contract.

WHEREAS, Article Twenty-One, Sections 1-5 provides instructions for the Wind-Up of the
Purchaser.

and, WHEREAS, the contractor will not be able to wind-up the contract with the negotiated
contract being executed at the same time.

NOW, THEREFORE, it is mutually agreed between the parties hereto to this modification that:

Article Twenty-One shall be delayed until the end of the negotiated sale, Contract
Number 15-5601-0001.

MIIINOTHING FOLLOWS////////////