Future GL Regionalization

I know GL has renewed their contract and I was told that the Government is making them change a lot of things up. One of those things deals with consolidating down the locations (again). For example, I heard that everything West of the Mississippi will be consolidated at one site, possibly in Oklahoma. Could that be true? I can't begin to imagine the cost of trucking all surplus material to one site so it can be auctioned off for pennies on the dollar. I am not sure if that includes trucks or just the misc. palletized stuff, but the guy seemed to know what he was talking about. What have you heard or read?

The GL guys here are telling me that all the small stuff (that can not sat out side to be sold) will be trucked to Columbus, Ohio. Looooong way from the coast of North Carolina. That means I will be seeing more new equipment that used to be sold going into the scrap hoppers.
One of the few, Frank USMC RET

The contract calls for GL to move all the things they 'buy' to be moved off the DRMO area (IE, rent their own warehouse/yard) and probably off the military installations. It would make it perhaps more convenient, and maybe not, for us, their customers. Easier in that we would not have to go on base, but harder in that they would be moving things off to their own warehouse more days a week (think forklifts picking up trucks and bending drive shafts) so the pickup schedule would narrow. And, they probably would consolidate points. Since I know of at least four points in South Carolina (and we are not a big state), that might also be good and bad. If I were betting, I would put my money on regional centers, spaced 200-300 miles apart, perhaps with an eye to where most of their customers are located. My

The 2 M818 I got from OKC 1) came from KS NG and the other came from a unit in the NE like main or some place out that way?? Why it got moved all the way OKC I have no idea.

Yes it is true. FT Lewis GL is loosing their warehouse but luckily not their yard. He said everything is going to be shipped to Oklahoma come early 2009. He said he is anticipating some angry phone calls but the gov't wants their building back and theres nothing GL can do about it. The contract is suppose to be good for another 3 years. The only things to remain at their respective sites are anything that can be stored outside. Gosh and I really wanted the 8 pallet lots of outdated computer monitors...

Re: RE: Future GL Regionalization

wsucougarx said:

He said everything is going to be shipped to Oklahoma come early 2009.

Click to expand...

If it all is coming to Oklahoma then my wallet will be a lot lighter. I better start saving my nickels.

Seeing that I am only 7 miles from the OKC yard I think I will start taking orders.

I had better buy some more land to store all the stuff....LOL

I was told by a GL manager that everything in Montgomery AL. was going to be moved to Anniston Al. soon and she even asked if I was willing to move some of the vehicles.
HMMMM...let me pick 20 to keep and I'll haul the rest for ya!!

Warthog,

If this really does happen, I bet someone could start a nice litle sideline business inspecting/picking up/packing/shipping small lots (not rolling stock) to people....
All one would need is time, a truck, UPS account, and some business sense..

Sounds to me like there is going to be bidding on contracts like they do with tires and scrap metal. I know the contractors get all kinds of stuff now that never gets to the public bidding. They scrap it. Can't imagine them hauling gloves, computer screens, oil filters etc half way across the country. I think there will be alot less to bid on.

This may not be so bad. I have purchased a couple lots of "salvage" since the renewal of the contract, and the first question out of GL when I arrived for pickup was "do you have room on your trailer for some additional items?" "Why yes, yes I do. Thank you very much!"
Basically these were items that had been defaulted on at least one time, and GL simply wanted them off their hands.

Wonder if it will make GL take the "cream of the crop" of items to sell. No use shipping "dead items" all over the country.

I'm only speculating but I don't think there likely will be lot sales like we are used to, but contracts that run for 6 mo. or a year on stuff like clothing, electronics etc.

Regionalization doesn't seem too marketable to me. DRMO just wants to give it to GL and say goodbye with as little hassel as possible. It's GL's responsibilty to get it off site. Though I'm sure if it is regionalized, DRMO will have to reimburse GL for shipping to a central location. Would be smarter to just rent some space close to DRMO sites where they operate now. They had to do this for a while in Chambersburg when GL equipment took up too much room. Now it still goes through Letterkenny, but then gets redistributed to Meade and Aberdeen from what I've been told. Guess GL didn't like renting space.

Is there anything that GL and DRMO do that isn't wasteful spending of taxpayer dollars? Regionlizing I think would cut out the individual buyer and the price/unit would go down since it would be larger bulk items. Perhaps though it the cheaper alternative in the end as the cost of renting space would exceed the increase profit from doing things the same as they are done now.

I'm rambling with no clear direction in sight.....

Perhaps, I misunderstood you, but I am not sure how this plan will lower prices. I believe they indicated that the minium acceptable bid was 4.5% of acquisition value. On a truck, that is more than they are bringing now on average.

M1075 said:

I know GL has renewed their contract and I was told that the Government is making them change a lot of things up. One of those things deals with consolidating down the locations (again). For example, I heard that everything West of the Mississippi will be consolidated at one site, possibly in Oklahoma. Could that be true? I can't begin to imagine the cost of trucking all surplus material to one site so it can be auctioned off for pennies on the dollar. I am not sure if that includes trucks or just the misc. palletized stuff, but the guy seemed to know what he was talking about. What have you heard or read?

Click to expand...

I was told the same thing by one of the site managers - he's looking for a job. That's pretty good confirmation as far as I'm concerned.

I was at Warner Robins/GA yesterday and they already were loading semi trucks, the lost the warehouse and lot, everything supposed to go to OK. I really don't see the point as 80% of the stuff there is pure junk. Funny thing is that I asked one of the semi truck driver where he was heading and he said Redstone Arsenal/AL....but I was with a friend mine that just come from Redstone and on Wed the GL guys there already had the pink slip warning (they said, please keep with the good work till your last day....hummm) and all the stuff was going to OK.

Now, they were hauling from GA to AL and than to OK.....why not GA to OK?

I guess the Gov got sick of see GL profits AND using their facilities

Oh, crapola. Just when I thought my GL MV purchasing days were slowing down!
So, if this IS true, the big question is, will it be Tinker or Norman? Although I'd rather pick up with Msgt. Lee any day of the week, I cannot imagine the 45th filling up their already crowded motor pool with a bunch of bins of scrap metal. There seems to be plenty of room at Tinker, and perhaps even more soon when the Chair Force moves into the recently leased vacant GM plant about a mile south of DRMO.
Thoughts, gents?

Is there any truth to the rumor that all the M35's have to be turned in by the end of the year?

Does this mean that the M35's will dry up on GL?

When there is nothing left to turn in, GL cant sell what they dont have...............