diff --git a/bikeshop_project/bike/__init__.py b/bikeshop_project/bike/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/bikeshop_project/bike/admin.py b/bikeshop_project/bike/admin.py
new file mode 100644
index 0000000..8c38f3f
--- /dev/null
+++ b/bikeshop_project/bike/admin.py
@@ -0,0 +1,3 @@
+from django.contrib import admin
+
+# Register your models here.
diff --git a/bikeshop_project/bike/apps.py b/bikeshop_project/bike/apps.py
new file mode 100644
index 0000000..c6b5601
--- /dev/null
+++ b/bikeshop_project/bike/apps.py
@@ -0,0 +1,5 @@
+from django.apps import AppConfig
+
+
+class BikeConfig(AppConfig):
+    name = 'bike'
diff --git a/bikeshop_project/bike/migrations/0001_bike_with_fsm.py b/bikeshop_project/bike/migrations/0001_bike_with_fsm.py
new file mode 100644
index 0000000..018ac32
--- /dev/null
+++ b/bikeshop_project/bike/migrations/0001_bike_with_fsm.py
@@ -0,0 +1,44 @@
+# -*- coding: utf-8 -*-
+# Generated by Django 1.10.4 on 2017-01-05 02:27
+from __future__ import unicode_literals
+
+from django.db import migrations, models
+import django.db.models.deletion
+import django.utils.timezone
+import django_fsm
+
+
+class Migration(migrations.Migration):
+
+    initial = True
+
+    dependencies = [
+        ('registration', '0002_auto_20161130_0157'),
+    ]
+
+    operations = [
+        migrations.CreateModel(
+            name='Bike',
+            fields=[
+                ('id', models.AutoField(auto_created=True, primary_key=True, serialize=False, verbose_name='ID')),
+                ('colour', models.TextField()),
+                ('make', models.TextField()),
+                ('size', models.TextField(choices=[('C', 'child'), ('M', 'medium'), ('L', 'large'), ('XL', 'extra large')], max_length=2)),
+                ('serial_number', models.TextField()),
+                ('source', models.TextField(choices=[('COS_BIKE_DIVERSION_PILOT', 'City of Saskatoon Bike Diversion Pilot'), ('UOFS', 'University of Saskatchewan'), ('DROP_OFF', 'Drop Off')])),
+                ('stripped', models.NullBooleanField()),
+                ('price', models.DecimalField(blank=True, decimal_places=2, max_digits=8, null=True)),
+                ('state', django_fsm.FSMField(choices=[('RECEIVED', 'Received'), ('ASSESSED', 'Assessed'), ('AVAILABLE', 'CPIC Searched'), ('CLAIMED', 'Claimed'), ('SCRAPPED', 'Scrapped'), ('PURCHASED', 'Purchased'), ('TRANSFERRED_TO_POLICE', 'Transferred to police')], default='RECEIVED', max_length=50, protected=True)),
+                ('stolen', models.NullBooleanField()),
+                ('donated_by', models.TextField()),
+                ('donated_at', models.DateField()),
+                ('created_at', models.DateTimeField(default=django.utils.timezone.now)),
+                ('modified_at', models.DateTimeField(auto_now=True)),
+                ('cpic_searched_at', models.DateTimeField(blank=True, null=True)),
+                ('claimed_at', models.DateTimeField(blank=True, null=True)),
+                ('last_worked_on', models.DateTimeField(blank=True, null=True)),
+                ('purchased_at', models.DateTimeField(blank=True, null=True)),
+                ('claimed_by', models.ForeignKey(null=True, on_delete=django.db.models.deletion.SET_NULL, to='registration.Member')),
+            ],
+        ),
+    ]
diff --git a/bikeshop_project/bike/migrations/0002_auto_20170105_0238.py b/bikeshop_project/bike/migrations/0002_auto_20170105_0238.py
new file mode 100644
index 0000000..392bb86
--- /dev/null
+++ b/bikeshop_project/bike/migrations/0002_auto_20170105_0238.py
@@ -0,0 +1,27 @@
+# -*- coding: utf-8 -*-
+# Generated by Django 1.10.4 on 2017-01-05 02:38
+from __future__ import unicode_literals
+
+from django.db import migrations, models
+import django.db.models.deletion
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('registration', '0002_auto_20161130_0157'),
+        ('bike', '0001_bike_with_fsm'),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name='bike',
+            name='purchased_by',
+            field=models.ForeignKey(null=True, on_delete=django.db.models.deletion.SET_NULL, related_name='purchased_bike', to='registration.Member'),
+        ),
+        migrations.AlterField(
+            model_name='bike',
+            name='claimed_by',
+            field=models.ForeignKey(null=True, on_delete=django.db.models.deletion.SET_NULL, related_name='claimed_bike', to='registration.Member'),
+        ),
+    ]
diff --git a/bikeshop_project/bike/migrations/__init__.py b/bikeshop_project/bike/migrations/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/bikeshop_project/bike/models.py b/bikeshop_project/bike/models.py
new file mode 100644
index 0000000..afdb9e5
--- /dev/null
+++ b/bikeshop_project/bike/models.py
@@ -0,0 +1,123 @@
+from datetime import timedelta
+from django.db import models
+from django.utils import timezone
+
+from django_fsm import FSMField, transition
+
+from registration.models import Member
+
+
+class BikeState(object):
+    RECEIVED = 'RECEIVED'
+    ASSESSED = 'ASSESSED'
+    AVAILABLE = 'AVAILABLE'
+    CLAIMED = 'CLAIMED'
+    PURCHASED = 'PURCHASED'
+    SCRAPPED = 'SCRAPPED'
+    TRANSFERRED_TO_POLICE = 'TRANSFERRED_TO_POLICE'
+    CHOICES = (
+        (RECEIVED, 'Received'),
+        (ASSESSED, 'Assessed'),
+        (AVAILABLE, 'CPIC Searched'),
+        (CLAIMED, 'Claimed'),
+        (SCRAPPED, 'Scrapped'),
+        (PURCHASED, 'Purchased'),
+        (TRANSFERRED_TO_POLICE, 'Transferred to police')
+    )
+
+
+class Bike(models.Model):
+    CHILD = 'C'
+    SMALL = 'S'
+    MEDIUM = 'M'
+    LARGE = 'L'
+    EXTRA_LARGE = 'XL'
+
+    size_choices = (
+        (CHILD, 'child'),
+        (MEDIUM, 'medium'),
+        (LARGE, 'large'),
+        (EXTRA_LARGE, 'extra large'),
+    )
+
+    COS_BIKE_DIVERSION_PILOT = 'COS_BIKE_DIVERSION_PILOT'
+    UOFS = 'UOFS'
+    DROP_OFF = 'DROP_OFF'
+
+    source_choices = (
+        (COS_BIKE_DIVERSION_PILOT, 'City of Saskatoon Bike Diversion Pilot'),
+        (UOFS, 'University of Saskatchewan'),
+        (DROP_OFF, 'Drop Off'),
+    )
+
+    colour = models.TextField(blank=False, null=False)
+    make = models.TextField(blank=False, null=False)
+    size = models.TextField(choices=size_choices, max_length=2)
+    serial_number = models.TextField(blank=False, null=False)
+    source = models.TextField(blank=False, null=False, choices=source_choices)
+    stripped = models.NullBooleanField()
+    price = models.DecimalField(max_digits=8, decimal_places=2, blank=True, null=True)
+    state = FSMField(default=BikeState.RECEIVED, choices=BikeState.CHOICES, protected=True)
+    claimed_by = models.ForeignKey(Member, on_delete=models.SET_NULL, null=True, related_name='claimed_bike')
+    stolen = models.NullBooleanField()
+    purchased_by = models.ForeignKey(Member, on_delete=models.SET_NULL, null=True, related_name='purchased_bike')
+    donated_by = models.TextField()
+    donated_at = models.DateField(blank=False, null=False)
+    created_at = models.DateTimeField(default=timezone.now)
+    modified_at = models.DateTimeField(auto_now=True)
+    cpic_searched_at = models.DateTimeField(blank=True, null=True)
+    claimed_at = models.DateTimeField(blank=True, null=True)
+    last_worked_on = models.DateTimeField(blank=True, null=True)
+    purchased_at = models.DateTimeField(blank=True, null=True)
+
+    def can_assessed(self):
+        return self.colour is not None and self.make is not None and self.size is not None and self.source is not None \
+               and self.price is not None
+
+    def can_available(self):
+        return self.stolen is not None and self.cpic_searched_at is not None and self.serial_number is not None
+
+    def can_claim(self):
+        return self.claimed_by is None or self.last_worked_on > timezone.now() + timedelta(weeks=4)
+
+    def can_purchase(self):
+        if self.claimed_by:
+            return self.can_claim()
+
+        return self.purchased_by is None
+
+    def can_scrap(self):
+        return self.stripped is not None
+
+    def can_transfer_to_police(self):
+        return self.stolen
+
+    @transition(field=state, source=[BikeState.RECEIVED], target=BikeState.ASSESSED, conditions=[can_assessed])
+    def assessed(self):
+        pass
+
+    @transition(field=state, source=[BikeState.ASSESSED, BikeState.RECEIVED], target=BikeState.AVAILABLE,
+                conditions=[can_available])
+    def available(self):
+        pass
+
+    @transition(field=state, source=[BikeState.AVAILABLE], target=BikeState.CLAIMED, conditions=[can_claim])
+    def claim(self, member):
+        self.claimed_by = member
+        self.claimed_at = timezone.now()
+        self.last_worked_on = timezone.now()
+
+    @transition(field=state, source=[BikeState.AVAILABLE, BikeState.CLAIMED], target=BikeState.PURCHASED,
+                conditions=[can_purchase])
+    def purchase(self, member):
+        self.purchased_at = timezone.now()
+        self.purchased_by = member
+
+    @transition(field=state, source=[BikeState.ASSESSED, BikeState.AVAILABLE, BikeState.CLAIMED],
+                target=BikeState.SCRAPPED, conditions=[can_scrap])
+    def scrap(self):
+        pass
+
+    @transition(field=state, source=[BikeState.ASSESSED, BikeState.RECEIVED], conditions=[can_transfer_to_police])
+    def transfer_to_police(self):
+        pass
diff --git a/bikeshop_project/bike/tests.py b/bikeshop_project/bike/tests.py
new file mode 100644
index 0000000..7ce503c
--- /dev/null
+++ b/bikeshop_project/bike/tests.py
@@ -0,0 +1,3 @@
+from django.test import TestCase
+
+# Create your tests here.
diff --git a/bikeshop_project/bike/views.py b/bikeshop_project/bike/views.py
new file mode 100644
index 0000000..91ea44a
--- /dev/null
+++ b/bikeshop_project/bike/views.py
@@ -0,0 +1,3 @@
+from django.shortcuts import render
+
+# Create your views here.
diff --git a/bikeshop_project/bikeshop/settings/base.py b/bikeshop_project/bikeshop/settings/base.py
index 3f35fd8..3f2d2b1 100644
--- a/bikeshop_project/bikeshop/settings/base.py
+++ b/bikeshop_project/bikeshop/settings/base.py
@@ -36,6 +36,7 @@ INSTALLED_APPS = [
 
     'registration',
     'core',
+    'bike',
 ]
 
 MIDDLEWARE_CLASSES = [