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9.1 Definition
“Surplus personal property” means that personal property which has been determined to be obsolete, outmoded, unusable or no longer usable by the University, or property for which future needs do not justify the cost of maintenance and/or storage. Such property must be declared “surplus personal property”; provided however, property need not be declared surplus where disposition is through the trade-in method.
9.2. Responsibility for Surplus Property
9.2.1 The President or designee has the responsibility of declaring personal property to be surplus property. The Director of Business Services and the Property Officer are designated as the individuals at the University responsible for the disposal of surplus property and the communications and procedures concerning the disposal of surplus property.
9.2.2 The Director of Business Services and/or the Property Officer shall be responsible for the maintenance of accountability on all items of surplus property and shall ensure that adequate audit and inventory trails on all items of surplus property are maintained.
9.3 General Rules
9.3.1 Surplus personal property is either usable property, which shall be transferred or sold, or unusable property, which may be destroyed, as hereafter provided.
9.3.1.1 Surplus personal property which is perishable food may be destroyed without delay or notification.
9.3.1.2 Surplus mattresses may be destroyed or may be otherwise disposed of only upon compliance with TCA 12-2-403.
9.3.1.3 Surplus personal property which is determined to be unusable by the University and of little or no salvage or other economic value may be destroyed by an appropriate method.
9.3.1.4 The University shall follow the procedures described in Inventory Control Policies and Procedures, Section 9.4.1 prior to disposal of all other surplus personal property.
9.3.2 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.
9.3.3 It is unlawful for any state official or employee, including TBR employees, 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 TCA 12-4-412.
9.3.4 For all sales to individuals except at public auctions, the University shall obtain from the purchaser a signed disclaimer certifying the purchaser is not a state or TBR employee and that the purchaser is not buying the property for or on behalf of any state or TBR employee.
9.3.5 All employees of the TBR and their immediate families, shall be ineligible to bid for or purchase surplus personal property except by bid at public auction.
9.3.6 Possession of surplus personal property sold to the general public under any method prescribed under Inventory Control Policies and Procedures, Section 9.4.1 shall not pass until payment is made by cash, or if payment is made by cashiers check or certified check, possession shall not pass until the check is honored by the drawee bank.
9.3.7 Possession shall pass to TBR institutions and schools, political subdivisions of the state and other governmental entities upon receipt, by the University, or purchase vouchers of such institutions or schools, political subdivisions or other governmental entities. Title to motor vehicles sold as surplus property to political subdivisions and other governmental entities shall be closed as to transferee when title is passed.
9.4 General Procedures for Disposal
9.4.1 No article of personal property may be disposed of as surplus except by one of the following methods:
9.4.1.1 Trade-in where such is permitted due to the nature of the property or equipment and subject to provisions of TCA 12-4-403 and the rules of this policy;
9.4.1.2 Transfer to other institutions within the TBR System;
9.4.1.3 Transfer to other state agencies;
9.4.1.4 Sale to eligible political subdivisions of the state and other governmental entities;
9.4.1.5 Public auction, publicly advertised and held;
9.4.1.6 Sale under sealed bids, publicly advertised, opened and recorded;
9.4.1.7 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;
9.4.1.8 Disposition through the Department of General Services as provided in the Department Rules and Regulations;
9.4.1.9 Donations to a public school or public school system;
9.4.1.10 Sale by Internet auction. (Also see Inventory Control Policies and Procedures, Section 9.4.7.)
9.4.2 If University property is declared surplus, the method of disposal shall be determined by the responsible authority from the alternatives set forth in Inventory Control Policies and Procedures, Section 9.4.1. Written documentation for the selection of method of disposal shall be maintained. The trade-in method, where property is of the nature appropriate for trade-in and transfer to other institutions or schools in the TBR System shall be the first and second priority methods, respectively, for disposal of surplus personal property, except for waste products, which shall be disposed of as further provided in this policy. In the selection of other methods of disposal, the following criteria shall be considered:
9.4.2.1 The character, utility and functionality of the property;
9.4.2.2 The economics of disposal in light of all relevant circumstances attendant the proposed disposal, including the condition and climate of the potential market and present estimated market value of the property, transportation costs and other cost factors associated with disposal; and
9.4.2.3 Sound fiscal and budgetary policy and practices.
9.4.3 The method of disposal selected in the preceding section shall be implemented pursuant to the specific procedures set forth in this policy for such disposition.
9.4.4 The Director of Business Services and/or the Property Officer shall be responsible for the maintenance of accountability on all items of surplus personal property, and shall ensure that adequate audit and inventory trails on all items of surplus personal property are maintained. Such authority shall make the final determination of the fair market value of surplus personal property for purposes of calculating reimbursements to the transferring institution or school and to determine whether property may be destroyed pursuant to Inventory Control Policies and Procedures, Section 9.3.1
9.4.5 Nothing shall prohibit the University from simultaneously providing notice of an intended disposition of surplus personal property to TBR institutions and schools and all state agencies as specified in Inventory Control Policies and Procedures, Section 9.4.1. In such event, if no TBR institution or school has requested the property within thirty (30) days of the initial notice, the first state agency which had requested the property within such time shall be entitled to receive the property.
9.4.6 Items that must be replaced may be traded in on replacement property. In connection with the trade-in method of disposal, the following functions shall be performed:
9.4.6.1 Invitations to bid are sent requesting bids with trade-in and without trade-in.
9.4.6.2 Evaluations of the condition and fair market value of the property to be disposed of will be made.
9.4.6.3 Utilizing a comparison of the bid and the evaluation prepared, a determination will be made whether it is in the best interest of the University to dispose of the property by trade-in or another appropriate method.
9.4.7 Except where the trade-in method is utilized or where the property is to be disposed of as a waste product, surplus personal property shall be publicized on an authorized Internet auction site. Such property shall be available to TBR and other state agencies as provided in Section 9.4.5 and then proceed to public bidding, unless otherwise disposed of in accordance with the methods specified in Inventory Control Policies and Procedures, Section 9.4.1.
9.4.7.1 Notice of intended disposal by Internet auction shall be posted on the Internet. Such notice shall specify and reasonably describe the property to be disposed of, the date, time, manner and conditions of disposal, all as previously determined by the University.
9.4.8 Surplus materials such as scrap metals, paper and paper products, used lumber, bottles and glass and similar materials of nominal value classified as scrap may be sold by the Property Officer directly to dealers at the current market value without soliciting bids. The University shall keep a record of the volume and unit price of such materials sold on the scrap market.
9.4.9 Waste products which are subject to storage and are normally accumulated until such quantities are available to make a sale economically feasible, shall be sold under sealed bids as follows:
9.4.9.1. Invitations to bid shall be mailed to known buyers of the particular item.
9.4.9.2 Three (3) firm bids shall be secured where possible.
9.4.9.3 Sealed bids shall be publicly opened ten (10) days after the invitations to bid are mailed.
9.4.9.4 The highest bidder shall be notified of the date for removal of the property and the method of acceptable payment.
9.4.9.5 A file shall be maintained for each disposal for the purpose of documenting the sale, including all documents and information pertinent to the disposal.
9.5 Departmental Responsibilities
9.5.1 A department desiring surplus property pickup should notify the Facilities Department utilizing a Surplus Pickup Request Form, available online at the Facilities website. If the property requesting to be picked up is equipment, a Request for Change of Accountability Form is to be completed and fully processed prior to removal of the equipment item from its location.
9.5.2 If a department desires to transfer an equipment item to another University department, an acceptable agreement to both departments should be negotiated. A "Request for Change of Accountability Form" is to be executed by both departments and sent to the Property Officer. Once an agreement is reached, the proper interdepartmental transfer will be initiated by the selling department.
9.5.3 If a department desires to trade in an item, the requisition for the new purchase shall include a description, the TTU Property Tag No. and the condition (i.e. good, fair, poor, etc) of the item being traded. The resulting purchase order shall contain a note to the Property Officer that shall be used to make the appropriate adjustment to the department’s inventory.
9.6 Income from Sale of Surplus Property
All income received from the sale of University surplus property will be credited to the University's Salvage Income account.
9.7 Limitations
University property cannot be sold by a department. (See Inventory Control Policies and Procedures, Sections 9.2 and 9.6.)
9.8 Exceptions
Surplus personal property may be disposed of by a method other than those listed in Inventory Control Policies and Procedures, Section 9.4.1 only upon request by the President or his designee and approval by the Chancellor or his designee.