Internal Policy and Procedures

Disposal of University Surplus Property Through Trade-In

POLICY:

Purchasing Services has the SOLE authority for disposal of surplus property at UW-Madison, other than titled and licensed vehicles, which are handled by the Department of Administration (DOA) [refer to PPP 17].

Purchasing Services is responsible for the proper disposition of trade-in or surplus (refer to PRO-F-3) property (refer to PPP 18) at a fair market value (refer to IPP 10) and for the benefit of UW-Madison in a timely manner. This disposition can include trade-in, sale of the property outright through the Offer to Sell (OTS) process (refer to IPP 54), sale of the property through the Surplus With A Purpose (SWAP) procedure whichever is judged to be in the best interests of the State. The decision of which method to use is based on the fair market value of the item and which method will ensure the University will receive the fairest market value through the disposal process used.

PROCEDURE:

1. When an agent receives a requisition referencing a trade-in, the agent must check funding string for federal funds, Gift-In-Kind or if the University has clear title.

1.1 Agent reviews trade-in for fair market value (refer to IPP 10). Agent may notify SWAP Manger for assistance (via e-mail) with past sales or markets for the item being traded in. The e-mail, along with the A110 form, should be put in the bid jacket. If no market value can be found, the SWAP Manager will recommend a trade in. Agent will need to fill out a Fair Price Analysis Form (refer to IPP 10).

1.2 If sale of the item is likely, then agent will initiate a parallel OTS as well as requesting bids with and without the trade in. An OTS must be issued with a due date the same as the bid opening due date, to avoid delays in selling the item(s) available for trade in, and prevent delays in awarding the bid. NOTE: The type of bid required is based on the total value of the item(s) to be purchased without the trade in. If needed, contact SWAP for a list of potential buyers or trade publications.

1.3 Prior to an OTS going out with a bid, an item must be offered to UW-Madison departments and Wisconsin public/state agencies. Contact SWAP with the items specifications and SWAP will place the item on the SWAP web site for five working days. If needed, an OTS will be run simultaneously with department notification.

1.4 SWAP will notify agent of any offers placed on equipment by UW-Madison departments or Wisconsin public/state agencies. Agent and department will determine whether to accept any offer(s) in the best interest of the University. If agent awards offer to a UW-Madison department or Wisconsin public/state agency, SWAP is instructed to contact awarded department and make arrangements for payment and transfer of equipment.

1.5 If no offers are received from UW-Madison departments or Wisconsin public/state agencies, the notification is moved to the General Public listing with the same opening time and date as the bid. Agent and department will determine whether to accept any offer(s) or negotiate.

EXCEPTIONS:

Photocopiers, mailing machines, medical and lab instrumentation, and mini computers

REFERENCES:

PPP 18 Surplus Property Disposal
PPP17 -Vehicles, Purchase/Lease, New/Used, Replacement and Disposal
IPP 10 - Fair Price Analysis
IPP 54 -Disposal of Surplus Property
PRO-F-3 - Surplus Property Disposal -- Non-vehicles