3. Significant Contracts
DLA Disposition Services
The Company has a Surplus Contract with the DLA Disposition Services in which the base term expired in February 2012 with two one year renewal options. The DoD has exercised both renewal options. During November 2013, the DoD suspended the Request For Proposal (RFP) process for the Surplus Contact. We continue to provide services under our existing contract. Under the Surplus Contract, the Company is required to purchase all usable surplus property offered to the Company by the Department of Defense at a fixed percentage equal to 1.8% of the DoD's original acquisition value. The Company retains 100% of the profits from the resale of the property and bears all of the costs for the merchandising and sale of the property. Included in Accrued expenses and other current liabilities in the Consolidated Balance Sheet, the Company has a liability to the DoD of approximately $9,257,000 and $9,627,000 for inventory as of September 30, 2013 and 2012, respectively. The Surplus Contract contains a provision providing for a mutual termination of the contract for convenience.
As a result of the Surplus Contract, the Company is the sole remarketer of all DoD surplus turned into the DLA Disposition Services available for sale within the United States, Puerto Rico, and Guam. Revenue from the Surplus Contract accounted for 30.3%, 27.2%, and 27.7% of our consolidated revenue for the fiscal years ended September 30, 2011, 2012, and 2013, respectively.
The Company has a Scrap Contract with the DLA Disposition Services in which the base term expired in June 2012 with three one year renewal options. The DoD has exercised the first two renewal options. Under the terms of the Scrap Contract, the Company is required to purchase all scrap government property referred to it by the DLA Disposition Services. The Company distributes to the DLA Disposition Services 77% of the profits realized from the ultimate sale of the inventory, after deduction for allowable expenses, as provided for under the terms of the contract. The Contract also has a performance incentive that allows it to receive up to an additional 2% of the profit sharing distribution. This incentive is measured annually on June 30th, and is applied to the prior 12 months. The Company earned a performance incentive for the years ended September 30, 2013, 2012 and 2011 of approximately $1,265,000, $1,651,000, and $1,601,000, respectively. For the years ended September 30, 2013, 2012 and 2011, profit-sharing distributions to the DLA Disposition Services under the Scrap Contract were $35,944,000 $43,242,000, and $49,318,000, including accrued amounts, as of September 30, 2013, 2012, and 2011, of $4,315,000 $4,041,000, and $7,203,000, respectively. The Scrap Contract may be terminated by either the Company or the DLA Disposition Services if the rate of return performance ratio does not exceed specified benchmark ratios for two consecutive quarterly periods and the preceding twelve months. The Company has performed in excess of the benchmark ratios throughout the contract period through September 30, 2013.
As a result of the Scrap Contract, the Company is the sole remarketer of all U.S. Department of Defense scrap turned into the DLA Disposition Services available for sale within the United States, Puerto Rico, and Guam. Revenue from the Scrap Contract accounted for 25.5%, 16.1%, and 13.5% of our consolidated revenue for the fiscal years ended September 30, 2011, 2012, and 2013, respectively.