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Purchase of Surplus Property (C-28)

Original Implementation: September, 1987
Last Revision: January 25, 2011

The Texas Facilities Commission (TFC) disposes of salvage and surplus personal property from Texas state agencies and manages the disposition of surplus and salvage donated to the state by federal programs. The State Comptroller advertises surplus property exclusively to state agencies, political subdivisions and assistance organizations. Surplus property not transferred within 10 days of posting is turned over to the Texas Facilities Commission for sale to state agencies, political subdivisions and assistance organizations as well as the general public. Federal surplus property is available only to eligible organizations, not private citizens or the general public. Available property can be viewed at the following URLs:

State Surplus (State Comptroller’s listing)

State Surplus (available at store fronts; TFC listing)

Federal Surplus

A requisition must be submitted to initiate the purchase of surplus property. Your purchaser is available to research the availability, condition and cost of surplus property.

STATE SURPLUS

The agency offering the surplus equipment is to be contacted directly to determine a price and make arrangements for transfer. The requisition submitted to the purchasing office should state on the requisition 'STATE SURPLUS PROPERTY'. The name of the state agency, the agreed price and arrangements for transfer should also be shown.

FEDERAL SURPLUS

The purchaser may make a written request for Federal Surplus to be held for SFA if it becomes available.

Visitation to and shopping at a Federal Surplus Warehouse is allowed only by a certified agent of the university. The item(s) may be picked up at the time of purchase or arrangements can be made for pick up at a later date. The individual(s) picking up the merchandise do not have to be certified, but they must have the receipt in hand when arriving at the distribution center. If the SFA Transportation Department picks up the item(s), the department will be IDT'd for travel and labor costs.

When the merchandise is received the itemized receipt and/or invoice should be returned to the procurement department.

Restrictions on the Use of Federal Surplus Property – Participating organizations (“donees”) are required to use the property obtained through the program for a specific amount of time before the property can be sold or transferred. Purchases of Federal Surplus Property are subject to the Single Audit Act of 1984 as required by OMB Circular A-133 and amended in 1996.

  1. Property must be used for the program approved for participation in the Federal Surplus Property Program.
  2. Property valued at less than $5,000 in original cost must be used for 12 months from the date put into use.
  3. All vehicles and property valued at $5,000 or more in original cost must be used for 18 months from the date put into use.
  4. Donee organizations do not obtain title or ownership to property designated “perpetual use” by the federal government. The period of use is considered to be “perpetual” or ongoing on these items.
  5. All property must be placed into use within the first year of possession.
  6. State and federal program staff perform scheduled and unscheduled onsite property compliance visits to ensure the property is being used as represented.
  7. If the property is not paid for in full or is not being used or handled as required, the donee will be required, at its expense, to return the property to TFC or another donee, as instructed by TFC.
  8. The property may not be sold, transferred or otherwise disposed of during the required period of use. If property is sold, transferred or otherwise disposed of during the required period of use, the donee may be subject to penalties and fines, as well as possible state or federal prosecution.
  9. Program participants are required to complete reports regarding property use as a condition of participating in the program.

Required Notice for Participants In The Federal Surplus Property Program

IT IS THE LAW

In accordance with federal law and the General Services Administration's (GSA) regulations and policies, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, and disability.

To learn more about GSA's Nondiscrimination in Federal Financial Assistance Programs or to file a complaint, you may contact GSA's Office of Civil Rights, as follows:

Write to the Office of Civil Rights, U. S. General Services Administration, 1800 F Street, NW, Suite 5127, Washington, DC 20405; or

Call (202) 501-0767 or 1-800-662-6376 (voice); FAX (202) 219-3369.
Individuals with hearing impairments: TDD 1-888-267-7660 or the Federal Relay Service at 1-800-877-8339.

Cross Reference: 41 C.F.R. §§ 101, 102; OMB Circular A-133; Purchase Requisition (C-30)

Responsible for Implementation: Vice President for Finance and Administration

Contact for Revision: Director of Procurement and Property Services/HUB Coordinator

Forms: Purchase Requisition, TFC Eligibility Application Form, TFC Update Form, TFC Authorized Representative Form

Board Committee Assignment: Finance and Audit