èßäapp

Scope

This policy provides guidance for purchases made through a government surplus property program including public auctions, bids or negotiations.

Reason for Policy

To ensure large dollar purchases have additional approvals and that all federal and state requirements are followed for all purchases through the surplus property program.

Policy Statement

Certain items of property and equipment are available at significant cost savings through the Federal Surplus Property program, which is administered by the èßäapp State Agency for Surplus Property, or the State Surplus Property program. èßäappSystem Supply Chain shall monitor all governmental property purchases, Federal or State to ensure adherence to the policies of governmental agencies for acquisition, use and disposal of the property.  These rules and regulations shall be disseminated to all departments using property acquired under these programs.

Purchases up to $100,000 for government surplus sales or privately owned property through public auction, bid or negotiation may be made by a Strategic Sourcing Specialist in the èßäappSystem Supply Chain.  Purchases of this nature that are over $100,000 must be approved by the Chief Procurement Officer prior to purchase.  It shall be within the jurisdiction of the Department of Surplus Property to authorize University personnel to sign receipts for, and take possession of any property from the State Agency of Surplus Property, and a list of personnel so authorized shall be maintained in Surplus Operations.

University property received that has a government value of $5,000 or more regardless of the acquisition cost shall be considered inventory items and must be reported to the Department of Surplus Property.

Use of Government Surplus Property
Surplus property may be acquired only for educational or research purposes within the State of èßäapp. Any acquisition for purposes of resale or other use is prohibited. All surplus property having a single item US Government acquisition cost of $3,000 or more, regardless of its cost to the University, and all motor vehicles:

• Must be placed in use for the purpose for which acquired no later than 12 months after acquisition.
• Must be used for the purpose for which acquired for a period of not less than 18 months, except for aircraft which must be used for a period of not less than 5 years.
• May not be sold, traded, leased, loaned, bailed, cannibalized, or disassembled for secondary purposes or otherwise disposed of or removed from the State of èßäapp during the specified use period without prior written approval of the Federal Government.
• May be transferred between departments during the specified use period only if it will be used for purposes similar to those for which originally acquired.

Definitions

Accountabilities

èßäappSystem Supply Chain:

• Purchase items through government surplus property programs
• Track all equipment over the stated thresholds

Departments:

• Collaborate with èßäappSystem Surplus Property to acquire desired property from governmental surplus property programs
• Track and report to Surplus Property all equipment purchased that are over the governmental thresholds above

Additional Details

Forms

University of èßäapp Internal Order Form: /media/fa/fa/management/records/forms/finance/um48.xls

Related Information

èßäapp State Agency for Surplus Property program:

History

Formerly Purchasing Policy Manual 605 – Surplus Property

Procedure