24 Disposal of Surplus Property

Policy Statement (Board Approval Date:  03/22/11)

The President, or his/her designee, may dispose of surplus property as per procedure.

Procedure:

The following are methods for declaring state property surplus:

1. Request Approval to Sell or Transfer Surplus Property: State-owned property may not be destroyed, sold, transferred, traded in, traded, discarded, donated, or otherwise disposed of without prior written approval of the President/designee.
2. Methods of Disposal of Surplus Property: The method of disposal of surplus property must be approved by the President/designee prior to disposal of state property. The following are methods for disposal of surplus property:

1. 1. Transfer to a State Agency or Authorized Entity: Property is transferred to another state agency or authorized entity with or without charge as mutually agreed by both parties.
   2. Sealed Bid: Property is sold by sealed bid.
   3. Public Auction: Property is sold at an advertised public auction coordinated by MSC, including such on line auctions as E-Bay and Craig’s list etc.
   4. Scrap Metal: Property is sold as scrap metal.
   5. Trade-In: Property is exchanged as trade-in for replacement equipment.
   6. Transfer to Oklahoma Department of Surplus Property for Disposal. Department disposes of surplus property, with the exception of vehicles and equipment, by any method listed with no remuneration to the state agency.
   7. Disposal by Other Means: Property is disposed of by other specified means which are deemed to be in the best interest of the state.
   8. Salvage: Items declared as salvage with no use as designed, unwanted by other agencies and have no material value may be disposed of or sold as scrap without public auction due to cost of advertisement exceeding the residual value receivable.

 Definitions:

1. Authorized Entity: A political subdivision, school district, a multipurpose senior citizen center, or non-profit entities of the state.
2. Public Auction: Either a tangible event at a public location or an electronic event which is advertised and made available to the public via the Internet – (e.g.) Craig’s list, E-Bay, local newspaper
3. Salvage or Scrap: Property which, because of its worn, damaged, deteriorated, incomplete condition or specialized nature has no reasonable prospect of sale or use as designed, but has some value in excess of its basic material content.
4. Trade-in: Equipment which is exchanged on replacement equipment.

Prohibitions:

1. Donations of State Property: Donations of state property to private individuals, for-profit organizations or state employees is prohibited.
2. Sales to State Employees: The sale of state property to state employees is prohibited unless items are sold at announced public sales auctions or when the item is not usable for state purpose but holds some scrap value to someone.