Administrative Policies and Procedures Manual - Policy 4610: Acquisition and Disposition of UNM Surplus Equipment

Date Originally Issued: 11-01-1991
Revised: 10-16-1998, 03-01-2006, 06-01-2007, 07-01-2011

Authorized by RPM 7.4 ("Purchasing")
Process Owner:  Chief Procurement Officer

1. General

This policy provides for the efficient, economical, and prudent management of surplus equipment. The University Surplus Property Department is responsible for purchasing surplus equipment from other organizations, reassignment of excess equipment, and disposal of University equipment. Every effort will be made to recycle usable equipment within the University. Departments are encouraged to use the Surplus Property Department as the first source of supply and are further encouraged to support the reutilization program by continually reporting and disposing of all surplus or excess equipment.

2. Acquiring Surplus Equipment

All requests for surplus equipment must be directed to the Surplus Property Department, which is aware of the availability of surplus equipment and is responsible for enforcing required procedures for the acquisition, control, and final disposition of surplus equipment. The Surplus Property Department acquires equipment from UNM departments and controls the process of acquiring equipment from various entities such as the New Mexico Federal Property Assistance Program, Sandia National Laboratories, Los Alamos National Laboratory, Kirtland Air Force Base, and the donation program under the New Mexico State Agency for Surplus Property.

Departments are welcome to inspect available equipment. The Surplus Property Department is located at 1642 University Blvd. N.E. Delivery arrangements may be made with the Surplus Property Department. Service charges and delivery charges will apply.

2.1. Procurement of Federal Government Equipment

Federal government surplus equipment is available only to University departments participating in federal projects through grant or contract programs. Requests for federal government equipment must be submitted in writing to the Surplus Property Department. The written request must include a complete description of the items desired, including any specifications pertinent to the equipment to ensure the acquisition of the most functional equipment. If the equipment requires inspection by the requesting department, this should be noted.

2.2. Procurement of State Equipment

Surplus equipment no longer needed by the federal government is offered for donation to various state agencies. The New Mexico State Surplus Property Agency coordinates the donation to eligible agencies, institutions, and organizations in the state of New Mexico.  Interested departments should contact the Surplus Property Department to inquire about available surplus items. Requests for inspection of the items must be coordinated with the Surplus Property Department. The selection of an item is not a guarantee that it will be allocated to the requesting department. The General Services Agency and the New Mexico State Agency for Surplus Property will make the final decision regarding distribution.

3. Disposal of University Equipment

All dispositions of University equipment must be processed through the Surplus Property Department. Departments that have surplus or excess equipment may negotiate a sale with another University department or request the Surplus Property Department to dispose of the equipment. To request a transfer or departmental sale of equipment, complete an Asset Adjustment form and submit it to the office of Inventory Control.  To request disposal of equipment, complete a Request for Disposal of Surplus Property form and submit it to the Surplus Property Department. Information Technologies (IT) will perform hard drive erasures for surplus computers at the Surplus Property location as computers are received.  They will also provide the necessary documentation to certify to the erasure of the hard drives to the State of New Mexico.  For more information on University equipment, refer to UAP 7710 ("Property Management and Control").

The Surplus Property Department will first offer the equipment to other University departments. If no internal University sale is obtained, the Surplus Property Department will dispose of items through advertised solicitation of bids, periodic auction of surplus equipment, donation, or a negotiated sale with interested parties.

3.1. Interdepartmental Sales

3.1.1. Departments Selling Surplus Equipment to Other University Departments

Departments selling surplus equipment to other University departments must send a memo to the accounting office indicating a description of the item, the sales price, the index code to be charged, the index code to be credited, and the signature of the dean, director, or department head from the buying and selling departments.

The selling department is responsible for reporting the transfer to the office of Inventory Control on an Asset Adjustment form. This form notifies the office of Inventory Control to take the equipment off the selling department's inventory list and add it to the buying department's inventory list.

3.1.2. Departments Selling Surplus Equipment Through Surplus Property Department

A department interested in selling surplus equipment can contact the Surplus Property Department for assistance. The department may recover approximately seventy-five percent (75%) of the proceeds when surplus equipment, with a sufficient value to justify a separate sale, is sold. At the end of the fiscal year, any funds collected by the Surplus Property Department not needed to cover operating costs will be distributed back to the departments utilizing the services of the Surplus Property Department based on the dollar value of equipment disposed of during the year. Items must be disposed of before any distribution of funds will be made, and some grant restrictions may apply.

3.2. Off Campus Sales

Only the Surplus Property Department may sell surplus equipment off campus regardless of its value. The Board of Regents must approve the disposal of items with a cost value over $5,000 appearing on the public inventory. All surplus equipment disposed of by the University must also comply with the New Mexico Statute, NMSA 1978 §13-6-1, Sale of Public Property. The Surplus Property Department uses various methods to dispose of equipment, including sealed bids, public auction, and salvage. Surplus property can only be sold to the general public through sealed bids and public auction.  Salvage property will be destroyed or otherwise permanently disposed of in accordance with applicable laws. 

3.2.1. Sealed Bids

Departments wishing to sell equipment by sealed bid must provide historical information, including current condition, original date purchased, the index code charged, the acquisition cost, and current resale value. Sealed bid sales are advertised in local newspapers. Departments will recover some portion of the proceeds from the sale of equipment.

3.2.2. Public Auction

Public auction sales are coordinated with an official auctioneer and are held approximately every other month. The auction is conducted on campus at the Surplus Property Department yard or the auctioneer's place of business. The auctioneer will utilize his list of interested parties for notification of auction.

3.3. Donations

Donations of surplus equipment by the University must also comply with New Mexico State Statute, NMSA, 1978, §13-6-1, Sale of Public Property.  The Board of Regents must approve the removal from inventory of items with a cost value over $5,000 appearing on the public inventory.  Requests for all donations regardless of cost value must be coordinated with the Surplus Property Department with the proper documentation.  This documentation includes a Request for Disposal of Surplus Property form, a copy of the recipient’s 501(c)3 status with the Internal Revenue Service, and a memo itemizing: the equipment to be donated, the recipient’s contact information, and the proposed educational use of the item(s) being donated. Once the donation is completed, the recipient will supply the University with a letter acknowledging receipt of the item(s).  

4. Recycling of Materials

New Mexico state law requires state agencies to establish and implement a source separation and collection program for recyclable materials produced as a result of operations. The University Recycling Department currently coordinates these efforts and will assist departments in recycling materials. For policies and procedures on recycling refer to UAP 6350 ("Recycling Materials").

 5. Related Links

Asset Adjustment Form
Request for Disposal of Surplus Property Form
UAP 7710 ("Property Management and Control")
UAP 6350 ("Recycling Materials")