U. S. DEPARTMENT OF JUSTICE United States Marshals Service Asset Forfeiture Division STATEMENT OF WORK FOR DISPOSAL OF HORSES A.

PARTIES AND PURPOSE 1. This agreement is between the contractor and the U.S. Marshals Service (USMS) through which the contractor will provide for the disposal of approximately four hundred (400) quarter horses and their offspring to include embryos and semen, as well as tack equipment, saddles, and other horse related equipment. 2. The purpose of this requirement is to provide for the disposal of horses located throughout the United States (in Arizona, Connecticut, Florida, Georgia, Illinois, Iowa, Kentucky, Michigan, Missouri, North Dakota, Ohio, Oklahoma, Texas, and Wisconsin). Most of the horses are located in Dixon, Illinois where a multi-day, live auction is anticipated, with duration not to exceed nine (9) hours each day, to include any auctioneer breaks. B. DEFINITIONS AND TERMS 1. "AS IS, WHERE IS": Horses will be sold with no warranty or guarantee whatsoever. Horses are to be purchased exactly as they appear at auction. They will be sold based on their appearance only. "As is" is a disclaimer of warranties or representations. "Where is" denotes that the buyer takes the horse(s) and other assets offered for sale as found and must remove them from the point of sale at the buyers expense. 2. CONTRACTING OFFICER (CO): A person with the authority to enter into, administer, and/or terminate contracts and makes related determinations and findings. 3. CONTRACTING OFFICER'S REPRESENTATIVE (COR): A Government staff member who is designated in writing by the CO. The CO also delineates the COR's responsibilities in writing. C. CONTRACTOR REQUIREMENTS 1. The Sales Plan shall include: 1. Advertising strategy(ies); 2. Staffing, to include number of auctioneers for a continuous sale process and administrative support for collection of sale proceeds and preparation of all documentation; 3. Setup, to include containment of participants and spectators at the auction site; 4. Process for on-line auctions, to include a back-up plan for receiving bids, and notifying prospective bidders, should the website become unavailable; 5. Process for live on-line simulcast capabilities;

6. Internet website traffic and bandwidth capabilities for advertising, preview, and sale periods; 7. Preview day process; 8. Registration, check out, horse pickup process, to include completion of registration/ownership transfer documentation, and bid deposit collection and refund process; 9. Security plan for preview and auction days; 10. Experience in conducting the sales of Registered American Quarter Horses, including but not limited to the following covered under the American Quarter Horse Association (AQHA): Stallions, halter, working hunter, western pleasure, riding, hunter under saddle, and show horses; 11. Experience in conducting sales of embryos, oocytes, and frozen semen; 12. Experience in conducting sales of recipient mares, broodmares and/or interests in foals in utero. 2. The contractor must comply with all applicable employment laws in the hiring and retention of employees and subcontractors, including the Immigration and Nationality Act and the provisions of Title 8 C.F.R. Part 274a. 3. It is anticipated the contractor shall commence sale preparation immediately upon contract award, with anticipated completion of all sales within 45 days thereafter, unless otherwise directed by the CO or COR. D. ADVERTISING 1. The contractor SHALL NOT DISCLOSE Government information in any advertisement, but shall first consult with the CO or COR before releasing advertising material. 2. The contractor is required to advertise horses and other assets for sale prior to the auction in at least one (1) national print publication and via contractor-operated Internet website in a timeframe as directed by the COR. Contractor must provide the website link to USMS to be posted on the USMS website. The website shall be supported by a server to provide acceptable download speeds by a high number of users in a short period of time. 3. The contractor shall advertise sales with the appropriate industry associations, including but not limited to the American Quarter Horse Association (AQHA) website and the print publication, as well as the American Paint Horse Association (APHA), and the Pinto Horse Association of America (PtHA). 4. For live and on-line sales, the contractor shall create a sales catalog. The circular shall include (at minimum) each horses identification information, description, pedigree background, and at least one photograph. The catalog shall be available in print in sufficient quantities and printable from on-line sources, to include at the contractors website.

E. SECURITY

1. Adequate security during all live auction days shall be the responsibility of the contractor. 2. The contactor shall employ local law enforcement to provide security, traffic control, and crowd containment during the auction period. 3. Deputy U.S. Marshals shall be present during preview and auction periods. 4. Law enforcement shall coordinate with the USMS to provide off-site parking for participants and spectators during the auction, and on-site parking for media and law enforcement. 5. The contractor should anticipate participants and spectators shall be shuttled to and from the auction site from off-site parking lots. 6. The contractor shall ensure alcoholic beverages are not introduced to the auction grounds. F. LIVE AUCTION VENUE 1. The live auction venue shall be designated by the USMS. 2. The contractor shall provide adequate sanitation stations during the auction and preview periods. 3. The auction site provides a covered facility and auction block where the auction shall take place. The facility provides space for participants with bid numbers. The spectator area is expected to cover a larger outdoor area. The contractor shall, to the best of its ability, provide reasonable shelter for spectators (from the sun or rain). Any shelter shall meet safety standards and require inspection by local authorities in advance of each auction day. 4. The contractor shall provide for a designated outdoor area for smoking and receptacles for tobacco disposal. The area shall be an adequate distance from other participants, facilities, hay, and pastures. 5. The USMS, through a local municipality, shall independently manage concessions (the sale of food and beverages) and trash receptacles and removal. 6. The contractor shall leave the facilities and grounds following the auction period as it was upon occupancy, with responsibility for policing all areas for trash, to include tobacco products (the USMS shall arrange for removal of consolidated trash from the site). G. DISPOSAL

Requirements for ALL auctions 1. The COR shall approve the methods for disposal for all assets. The contractor shall receive written instructions for the disposal of all assets. 2. Auctions shall be open to the public without charge of an admission fee. Private sales are prohibited. 3. The contractor is required to comply with registration/certification of horses sold pursuant to AQHA rules and regulations (AQHA Official Handbook Rule 222) to include preparing paperwork and all required documentation to include the transfer of ownership upon the completion of the sale, if applicable. The USMS shall serve as the signatory authority on registration transfer documentation. 4. Any fees relating to the registration or with the AQHA or any other organization is the sole responsibility of the buyer and shall be disclosed in written terms and conditions of sale to the public in advance of the sale. 5. Foals aged four to six months and under shall be sold with its mare as a single unit unless otherwise directed by the COR. 6. The contractor shall allow supervised public viewing and inspection of the horses by appointment only. 7. Horses and other assets not being sold shall be segregated from the preview and auction area. 8. Prior to viewing day, the contractor shall coordinate with the COR to have scheduled access to the facility to prepare assets for sale with sufficient lead time. The contractor shall complete the following sales preparation for all horses to be sold: a. Wash and groom the horses; b. Ensure all farrier/blacksmith services for each horse are current; c. Ensure basic medical care services, including veterinary treatment, are current. 9. Viewing days shall be for eight (8) hour periods during each of three (3) preview days prior to the sale, and by appointment only. The contractor shall schedule appointments with COR review and approval. 10. The contractor shall have a knowledgeable representative, familiar with the quarter horse industry, available to answer any questions. 11. The contractor shall conduct all sales in accordance with all applicable Federal, state, and local laws, regulations, and ordinances.

12. Auctions must be conducted by an auctioneer. The auctioneer must be licensed (if applicable by state and/or municipality) and a Member of the National Auctioneers Association or the Certified Auctioneers Institute. It is the responsibility of the contractor to ensure the auctioneer has the applicable licensing and/or permits according to state and local laws for the duration of the contract with copy(s) provided to the USMS in advance. 13. Purchasers are required to sign the USMS Asset Forfeiture Division Personal Property Sales Certification and a supplement statement provided by the USMS indicating horses are not being purchased for slaughter. Copies of these documents shall be sent to the USMS within ten (10) business days of the auction. 14. The contractor shall not charge any admission or entry fee, processing fee, or any other charges or fees. This includes charging for a sales list/brochure. A buyers premium is the only authorized charge. 15. The USMS reserves the right to remove any horse from the auction at any time prior to sale. 16. Horses are sold As-is, Where Is. 17. The following parties are prohibited from bidding on or buying directly or indirectly any assets for sale: a. DOJ employees and their immediate family members; b. Vendors under contract with the USMS in its Asset Forfeiture Program, including appointed monitors and trustees, their sub-contractors and employees who provide contract/management services for personal and real properties and complex assets, and their immediate family members; c. Defendants in Criminal Cases under titles 18 U.S.C. 1963(f) and 21 U.S.C Section 853(h) of the Comprehensive Crime Control Act of 1984 prohibit the Government from reverting to a defendant or any person acting in concert with or on behalf of such defendant, property that was involved in the same defendants conviction on charges, or violations of 18 U.S.C. Section 1962 or 21 U.S.C. Section 841 et seq; d. Any person whose conduct gave rise to a civil forfeiture of the property or to anyone acting in concert with or on behalf of, such a person. This general prohibition may be lifted in civil forfeiture actions on a case-by-case basis due to extenuating circumstances, as determined by the USMS and the relevant U.S. Attorneys Office (USAO), with the concurrence of its Ethics Officer, Office of General Counsel;

e. Other governmental and non-governmental agents who are involved in the Asset Forfeiture Program; f. Any person, who in the reasonable judgment of the USMS, in consultation with the USAO and/or Asset Forfeiture and Money Laundering Section, may act on behalf of, or serve as an agent of a prohibited purchaser. 18. If a minimum bid is required, the COR will notify the contractor, in writing. 19. The contractor shall determine, with COR concurrence, the best method of bid deposit collection. Forfeited bid deposits shall be given to the USMS at the end of the sale. 20. Payment shall be received in full and all assets shall be removed by winning bidders within five (5) business days of the end of the sale/auction process. 21. The USMS shall supply a Bill of Sale for each horse sold. The contractor is responsible for completion of the Bill of Sale on the day of the auction. The Bill of Sale shall be issued to the purchaser upon full payment of the horse. A copy of the Bill of Sale shall be sent to the USMS within ten (10) business days of the auction. 22. The contractor shall issue a receipt to the purchaser for money received, which will indicate the purchaser's name, selling price, certification number, and a name/description of the horse. A copy of the receipt shall be sent to the USMS within ten (10) business days of the auction. 23. The contractor shall issue a copy of the current AQHA certificate (if available) or a USMS letter to the AQHA stating the horse is without certificate to allow horses to be registered. 24. The contractor shall provide sale documents to the contractor responsible for ongoing management and care of the horses indicating the buyers name, horse name, and chip number (if applicable) to release the purchased horse following its sale. 25. The contractor shall receive and be responsible for all money collected during the auction. The USMS will not be responsible for money that is lost, stolen, received in error, designated as insufficient funds, or misapplied while in the hands of the contractor. 26. The contractor shall provide the USMS an auction results report that identifies the asset ID, horse name, chip number (if available), purchasers name, purchase price, and buyers premium fee. This report shall be sent via email to the USMS within ten (10) business days of the auction. 27. The contractor shall submit sale results and net sale proceeds to the COR within ten (10) business days of the auction via certified check, cashiers check, money order or Electronic Funds Transfer (EFT). 28. The contractor shall not charge the USMS any sales fees, commissions, etc.

Requirements for Live Auctions 1. The contractor shall utilize online simulcast for all live auctions to allow the public to bid online during live auctions. 2. The contractor shall post the Sales Terms and Conditions for USMS auctions and USMS Asset Forfeiture Division Personal Property Sales Certification in a public area where they can be viewed by prospective buyers. A public announcement of Sales Terms and Conditions shall also be made prior to the start of the auction on each day. 3. USMS representative will attend the auction to approve/disapprove bids. 4. The contractor shall video and audio-record the auction. Recordings shall be submitted to the USMS within ten (10) business days after the conclusion of the sale. 5. Contractor shall allow buyers to remove assets at the end of each sale day. Requirements for Internet Auctions 1. On-line auctions must be open to the public, through an Internet website with applicable security measures to protect against hacking. The contractor shall disclose on its website its backup plan for receiving bids should its website become unavailable. 2. The contractor shall post the Sales Terms and Conditions for USMS auctions and USMS Asset Forfeiture Division Personal Property Sales Certification for the on-line auction on their website and, on preview day, in a public area where they can be viewed by prospective buyers. 3. A USMS representative will be available for consultation via phone/email to approve/disapprove bids. H. HOLD HARMLESS & INDEMNIFICATION AGREEMENT 1. The contractor agrees to hold harmless the United States for any death, injury, or other harm suffered by any officer, employee, volunteer or other individual caused by the horses during preparation, preview, auction, and release of the assets. 2. The contractor agrees to indemnify the United States in the event that any suit, crosscomplaint, third-party complaint, or counterclaim is filed against the United States, resulting from any death, injury, harm or claim of any kind suffered by a third party caused by the horses during preparation, preview, auction, and release of the assets. 3. The contractor agrees to hold harmless the United States for any personal property damage caused by any of the horses during preparation, preview, auction, and release of the assets.