Surplus Property Procedures
It is the University's policy to receive the maximum amount of value from a piece of equipment, furniture or property excluding real estate. When it has been determined that no further value is to be realized by the University through utilization of a particular piece of equipment, furniture or property excluding real estate, the said item shall be declared surplus. Once declared surplus, items will be disposed of as set forth in the following procedures. The University’s Director of Procurement and Contracting has the primary responsibility to monitor compliance with this policy (These procedures have been developed, and should be read in conjunction with University Policy ESU-2013-03).
- Surplus Declaration Process
When it is determined, by the user department, that an item has served its original purpose and no longer provides value to the original department, this item shall be slated for determination of its eligibility to be declared surplus.
The decision to designate an item as surplus must be made by the person with purchasing authority for the department in which the equipment, furniture or property excluding real estate is located.
Should a circumstance present itself where no one is in a position to make a surplus determination, that decision will be made by the Director of Procurement and Contracting. No property shall be released or declared as surplus, without the prior, written approval of the Vice President of Administration and Finance. Such approval is to be obtained by initiating the Surplus Property Declaration Form (SPDF). A copy of this form is attached for use by university departments. Should there be any proceeds from the sale of any surplus property, these monies will be deposited in the general fund of the University.
If an item of surplus property has an East Stroudsburg University property tag or bar code, the Business Office shall be notified that the item is being relocated to another location or disposed of as surplus property. Such notification will be ensured by the Director of Procurement and Contracting by endorsing the SPDF and sending it to the Business Office for final record and retention.
- Surplus Disbursement/Disposal Program
- Campus Notification Process
If the decision has been made that an item has become surplus, the department will initiate the SPDF. Notification of the availability of the said item(s) will be made by the Director of Procurement via a campus-wide email, listing the item(s). The item(s) may be transferred to another department at the discretion of the Director of Procurement and Contracting. Preference will be given to reuse of this property by other campus departments. Interested departments must declare their desire for an item to the Director of Procurement and Contracting. The item(s) will be awarded on a “first request-first award” basis. The department receiving the item(s) should fill out a work request on-line at the Facilities Management website. The SPDF will then be duly endorsed and forwarded to the Business Office for final record and retention
- State System Universities Notification Process
If the method outlined in subsection a. fails to redistribute the property, the Director of Procurement and Contracting will issue an email to other State System universities informing them of the available surplus property. Interested parties will declare their interest for the said item(s) to the Director of Procurement and Contracting and the property will be awarded on a “first request-first award” basis. The receiving university must arrange for transfer of the item(s) to its campus in a timely manner. The SPDF will then be duly endorsed and forwarded to the Business Office for final record and retention. The item(s) will be moved to surplus storage if not claimed or scrapped. Items unclaimed but deemed to have some residual functionality and/or residual value will be considered for donation, trade-in, sale or declared scrap as outlined below.
- Trade-in of Item
Often a manufacturer will provide a trade-in value for old equipment when a new purchase of similar equipment is considered. The value of the trade-in offer may be questioned by those in the field and if it is determined, by the involved parties and the Director of Procurement and Contracting, that equitable value is being provided then an agreement may be reached. The traded equipment’s model, serial numbers and bar coded numbers will be listed on the purchase order designated for acquisition of the replacement items. Credit for these items will be an integral part of the overall purchase price of the new equipment order. The SPDF will need to be completed for each item granted some trade-in value and routed to the Business Office after the item has been traded for record and retention.
- Sale Process
- Sealed Bid
Approximately twice yearly notification of the University's intent to sell surplus items will be advertised locally for a period of three (3) days. Appropriate dates, applicable terms and conditions, and a description of the items available for sale will be included in the notice.
The Facilities Management Department or the offering department personnel must be made available to provide viewing access (to stationary equipment or secured property) and to provide any other pertinent information. Sealed bids must be sent by those interested in purchasing surplus property directly to the Director of Procurement and Contracting or an authorized designee.
As each sealed bid is received, the date and the time are to be recorded on the envelope and the bids put in a locked file. Immediately after the sale concludes, sealed bids will be opened and the items awarded by the Director of Procurement and Contracting or an authorized designee. The highest qualified bid received will be declared successful. If the amount bid on an item is the same, the earliest received bid shall be awarded the item(s).
Item(s) must be removed immediately after notice of successful bid is received by the party. In no case shall any awarded property remain on campus beyond five (5) business days after the award notice unless previously agreed to by the Director of Procurement and Contracting. All item(s) must be paid for and removed between the hours of 1 p.m. and 3 p.m. (Monday through Friday) within three (3) business days following the bid award, or at a date and time as agreed. Payment may only be made by certified check or money order.
All certified checks and/or money orders shall be kept safe overnight and presented to the Business Office or cashier the following morning for deposit.
- If item(s) are not removed within the time limits allowed, one of three actions will be taken:
- The affected item(s) may be re-awarded to the next highest bidder.
- The original awardees may be charged an additional $50 for extra handling or storage (this should be included in the bid notice).
- If neither of the aforementioned methods works to remove these items from campus, the item(s) will be declared as scrap and disposed of accordingly. The original awardees may be invoiced for the charges incurred for the disposal of these items, including labor charge for University personnel, and the fees charged by the disposal company for removal (this should be noted in the bid notice).
- If no bids are received on any of the item(s), such item(s) may be scrapped and hauled away.
- Bidding Eligibility
University employees or their immediate relatives are not eligible to bid on surplus items for sale. Barring the above exceptions, anyone 18 years of age or older is eligible to submit a bid for surplus item(s).
- Acceptance or Rejection of Bids
The University reserves the right to accept or reject any or all bids for the disbursement of surplus property.
- Property Control Notification
It is the responsibility of the Director of Procurement and Contracting, or designee, to notify property control personnel in the Business Office, of the removal of or relocation of surplus property. The asset bar code number will be recorded and reported to property control and the SPDF will then be duly endorsed and forwarded to the Business Office for final record and retention
- Donation of Items to Non-Profit Organizations
Item(s) not needed by campus departments or other State System institutions may be given to non-profit organizations. Preference will be given to organizations established in or serving in Pennsylvania. Educational institutions (such as public schools), charitable organizations and other not for profit organizations may indicate their interest in receiving surplus property by writing to the Director of Procurement and Contracting. The decision to give surplus property will rest with the Vice President of Administration and Finance. The Director of Procurement and Contracting will forward his /her recommendation to the Vice President Administration and Finance and seek approval before an award is made. The SPDF will then be duly endorsed and forwarded to the Business Office for final record and retention.
For some items it may be considered advantageous to use components of one unit to help reconstruct another. This process may leave nothing more than an empty shell of little or no value. Disposing of an item that has been cannibalized in a University dumpster is the most cost-effective method of disposal.
The decision to use this process belongs to the supervisor of those involved in the reconstruction process. In all instances, if the item has a bar code tag number, it is necessary to report the status of the item to property control personnel for the recording of the transfer of disposal. The SPDF is to be filled out and annotated as such by the originating department and routed to the Director of Procurement and Contracting who will approve such cannibalization and forward the SPDF to the Business Office for record and final retention.
- Special Value
Items that are perceived to have a potential special value (i.e. antiquities, artwork, and memorabilia) will be handled separately. At the discretion of the President or his/her designee, the items will be auctioned to the highest bidder. Such auction will be held locally, on-line (internet auction site), or the item(s) will be sent to a regional or national auction house at the discretion of the President. The originating department will initiate the SPDF duly annotated and forward it to the Director of Procurement and Contracting who will endorse it after the item has been auctioned and route it to the Business Office for record and final retention.
- Scrap Designation of an Item
If the condition of an item is listed as poor, broken, not working, or cannibalized, then, on the recommendation of the department head, the Director of Procurement and Contracting will declare the item as scrap and inform Facilities Management to arrange for its disposal. The SPDF will then be duly endorsed and forwarded to the Business Office for final record and retention.
- Special Handling for Selected Items
- Computers, Telecommunications, Copiers and Related Equipment
The Center for Computer Services must be contacted prior to the transfer/surplus declaration of any computer, printer, copier, telecommunications or other network related equipment. To initiate this process, an on-line request must be initiated by the originating department using the TMA work order system. If applicable, Computer Services Staff will clean the hard drive and erase all user data files and process any asset tag(s). If it is determined that the item has no further use within the department, the SPDF will be initiated and process outlined above will be adhered to.
- Hazardous Material
A University department may not declare surplus any materials that have hazardous chemical compounds contained therein. Materials that exhibit the characteristics of ignitability, corrosiveness, reactivity, toxicity or are on any federal or state hazardous waste lists are considered to be hazardous. When it is determined that a product which contains hazardous chemical compounds is no longer needed, or of use, the item must be immediately reported to the Director of Safety who will decide the need for, and the method of disposal for the product. All equipment containing refrigerants (air conditioners, refrigerators etc.) must be drained of the refrigerant by Facilities Management and duly tagged before they may be scrapped.
Procurement and Contracting Office
145 Ridgeway Street
East Stroudsburg University
East Stroudsburg, PA 18301-2999