The University of Memphis

Surplus Property



BFGuide

Issued: Jul 2, 2004
Updated: Dec-22-2011
Responsible Official: Assistant Vice President, Business Services
Responsible Office: Procurement and Contract Services

Purpose


To provide users with information related to surplus property procedures, including disposal of surplus property.


Contents

Definitions
Procedures
Related Forms
Links
Contacts

Definitions


Cannibalization University property in which serviceable parts are removed for use in the repair of other equipment.

Hazardous Materials A substance or material, which has been determined by the Secretary of Transportation to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce, and which has been so designated.

Salvage University property that is no longer useful as a unit in its present condition but may have some value as scrap, usually because parts from it may be recovered and reused.

Scrap University property that has no value except for its basic material content.

Surplus

Any University property such as movable equipment or supplies (as opposed to real property such as land or buildings) a department determines to be excess to its needs and for which the department has no foreseeable requirement.


Zero Value University property that has reached its useful life and frequently has limited value.


Procedures


General Rules

Surplus property is personal property owned by the University that has been determined obsolete, outmoded, unusable or no longer usable by the University or for which future needs do not justify the cost of maintenance and/or storage. Disposal of such property must be in accordance with this guideline and TBR Policy 4:02:20:00, Disposal of Surplus Personal Property.

The Director of Procurement and Contract Services is the designated administrator for disposal of University surplus property. The Central Receiving Department is responsible for the pick-up, delivery, and maintenance and/or storage of surplus personal property.

Surplus personal property is either usable property, which shall be transferred or sold, or unusable property, which may be destroyed in accordance with TBR Policy 4:02:20:00, Disposal of Surplus Personal Property.

  • Perishable food may be destroyed without delay or notification.
  • Surplus mattresses may be destroyed or may be otherwise disposed of only upon compliance with T.C.A. 12-2-403.
  • Surplus personal property, which is determined to be not usable by the University and of little or no salvage or economic value, may be destroyed by an appropriate method.
  • Surplus personal property in which the Federal Government or other entity has a legal interest should be transferred to such entity when no longer needed.
  • All employees of the Tennessee Board of Regents (TBR) and their immediate families shall be ineligible to bid for or purchase surplus personal property except by bid at public auction. It is unlawful for any state official or employee to purchase from the State except by bid at public auction any surplus property during the tenure of his office or employment, or for six (6) months thereafter. A purchaser who violates this provision is guilty of a misdemeanor under T.C.A. 12-2-412.

The property transfer section of University Procedure 2D:01:01H, Inventory and Control Program for University-Owned Equipment should be referenced to assure proper transfer of equipment from account to account using the Equipment Transaction Record.

Items which are not in good working order and are determined to be beyond economical repair may be traded-in on replacement property, cannibalized or designated as "zero value" following University Procedure 2D:01:01H, Inventory and Control Program for University-Owned Equipment.

Each departmental equipment inventory representative managing University property should fully understand University Procedure 2D:01:01H, Inventory and Control Program for University-Owned Equipment, which outlines the categories for deletion of equipment from inventory.


Declaring Usable University Property as Surplus

The department chairman, activity head, or designated departmental equipment inventory representative shall declare usable University property surplus to their needs by utilizing the trade-in method or by accessing the Used Furniture and Equipment Bulletin Board. Both methods shall be consistent with University Procedure 2D:01:01H, Inventory and Control Program for University-Owned Equipment.

  1. Utilizing the Trade-In Method - This is the preferred method of disposing surplus personal property, if such property is suitable for trade-in. Items that must be replaced may be traded in on replacement property. Departmental personnel shall submit an approved Equipment Transaction Record, along with an approved purchase requisition to Procurement and Contract Services. Section A of the Equipment Transaction Record must be completed indicating the decal number, general description, account number, and the words "trade-in." The Procurement and Contract Services Department will solicit bids requesting prices with trade-in and without trade-in and receive and review the bids. Based upon the evaluation of the condition and fair market value of the property to be disposed and comparisons of bids, a determination will be made as to whether it is in the best interest of the University to dispose of the property by trade-in or by one of the other methods of disposal.
  2. Utilizing the Used Furniture and Equipment Bulletin Board - This electronic bulletin board is available on the Procurement and Contract Services web site and is provided to enable the effective transfer of usable surplus items from one University department to another. Departmental personnel shall declare usable items as surplus by entering the items into the Used Furniture and Equipment Bulletin Board. Items shall be posted on the bulletin board for a period of two weeks in which other departments may request transfer of the items. During the two-week period, items shall remain in the relinquishing department's office, not in stairwells or hallways. Inventory decals, if any, must remain on the property for auditing purposes. If surplus items are not claimed by another department within the two-week period, Central Receiving will schedule pick-up of the items. At the time of pick-up, an approved Equipment Transaction Record shall be prepared by the relinquishing department and delivered to Central Receiving staff. Custody of the surplus property does not transfer to Central Receiving until both parties approve the Equipment Transaction Record. Central Receiving shall store the items in the warehouse until the Director of Procurement and Contract Services initiates procedures to dispose of the items in accordance with TBR Policy 4:02:20:00, Disposal of Surplus Personal Property.

Acquiring Surplus Property

Departments may check availability of many surplus items by going to the Used Furniture and Equipment Bulletin Board and clicking on "Search for Surplus Items at Department Locations" or "Search for Surplus Items at Central Receiving." For transfer of equipment from one department to another, contact the relinquishing department and complete the Equipment Transaction Record, if appropriate.

To view surplus items at Central Receiving, contact Central Receiving staff at 678-2270 to set up an appointment. To acquire selected surplus items, departmental representatives must provide to Central Receiving written authorization from the individual with signatory authority for the respective budget/departmental account. The individual assigned to pick up surplus property may be requested to present University identification to Central Receiving staff. When the surplus items are categorized as equipment, a completed Equipment Transaction Record is required.


Delivery of Surplus Property

To request delivery of surplus items from the Central Receiving warehouse to the department's location, submit a memorandum to Central Receiving noting a brief description of the item(s), along with a contact person's name, phone number, and the delivery location. Central Receiving staff will call the designated contact person to schedule an appointment to deliver the item(s). Deliveries are made between the hours of 8:00 A.M. to 12:00 P.M. and 1:00 P.M. to 4:00 P.M., Monday through Friday.


Cannibalization, Zero Value Property, Scrap, and Hazardous Materials

University property that has been declared cannibalized or zero value using an Equipment Transaction Record should be disposed of in the most cost effective manner in accordance with University Procedure 2D:01:01H, Inventory and Control Program for University-Owned Equipment. Decals, if any, should be removed and sent to the Property Accounting Office with the transaction record. This will assure that inventories will accurately reflect listings of property assigned to the individual department or activity. Quantities of scrap or unusable materials removed from inventory listings as a result of cannibalization or zero value declaration should be reported to Physical Plant Custodial Services for scheduled removal.

Electronic devices, such as circuit boards, computers, monitors and printers are considered hazardous materials when not used as intended. Such hazardous materials cannot be disposed in the trash or garbage. Departmental personnel shall request removal of hazardous materials by completing the Equipment Transaction Record, along with a memorandum to Central Receiving describing each item and its location, and the name and phone number of the departmental contact person. Central Receiving staff will call the designated contact person to schedule an appointment to pick up the items.

Other equipment (may include, but not be limited to, centrifuges, refrigerators, vacuum pumps, etc.) that has in the past or may presently contain hazardous materials must be properly decontaminated and have a completed Equipment Release Form attached prior to being picked up by Central Receiving.


Methods of Surplus Disposal

The Director of Procurement and Contract Services is responsible for the disposal of surplus property utilizing one of the following methods in accordance with TBR Policy 4:02:20:00, Disposal of Surplus Personal Property:

  • Trade-In;
  • Transfer to other institutions and schools within the Tennessee Board of Regents system;
  • Transfer to other state agencies;
  • Sale to eligible political subdivision of the state and other governmental entities;
  • Negotiated contract for sale, at arms length; but only in those instances in which the availability of the property is recurring or repetitive in character, such as marketable waste products;
  • Disposition through the Department of General Services as provided in the Department Rules and Regulations;
  • Donations to a public school or public school system;
  • Sale by Public auction;
  • Sale by Internet auction;
  • Sale by Sealed Bid.


Related Forms


Equipment Release Form http://www.memphis.edu/ehs/pdfs/equiprelform.pdf

Equipment Transaction Record http://bf.memphis.edu/forms/equi/equi01.htm


Links


University Purchasing Policy http://policies.memphis.edu/UM1507.htm

TBR Policy 4:02:20:00, Disposal of Surplus Personal Property http://www.tbr.edu/policies/default.aspx?id=1140

University Procedure 2D:01:01H, Inventory and Control Program for University-Owned Equipment http://policies.memphis.edu/2d0101h.html

Used Furniture and Equipment Bulletin Board http://bf.memphis.edu/pp/central-receiving/

Tennessee Code Annotated http://www.michie.com/tennessee/lpext.dll?f=templates&fn=main-h.htm&cp=

Physical Plant Web Site http://bf.memphis.edu/pp/


Contacts


Central Receiving Staff http://bf.memphis.edu/pp/central-receiving/dept.php

Procurement and Contract Services Staff http://bf.memphis.edu/procurement/staff.php


Revision Dates


Nov-26-2008, 12-22-2011
(Working Guideline Number: 10215)