The purpose of this Surplus Property Manual (hereinafter the “Manual”) is to publish the administrative rules and regulations issued by the Department of Administrative Services (DOAS), through its Surplus Property Division (Surplus). These administrative rules govern the activities that Georgia State executive branch entities use to dispose of state surplus personal property and are intended to support the following purposes:  

1.  Save the state (taxpayers) money through centralized redistribution and disposal of unneeded property.
2. Create an audit trail that verifies and validates appropriate property disposal as required by legislation, Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB).
3. Maximize the return for the disposal of state property.
4. Make the surplus property regulations consistent among eligible participants and entities in the state.
5. Provide guidance and facilitate the acquisition of federal surplus/excess property by state participants.
6. Ensure the fair and equitable treatment of all persons who deal with the surplus property system of Georgia.
    

This manual supersedes the Surplus Property Disposal Guide and any revisions to the guide or the manual issued prior to the effective date of this manual.

The mission of the Department of Administrative Services, Surplus Division is:

“To ensure the equitable and appropriate redistribution and disposal of Georgia state and federal personal property to state and municipal government entities, and eligible nonprofit organizations.”

With limited exceptions, surplus is responsible for the final disposition of all state personal property. Additionally, it serves as the State Agency for Surplus Property (SASP), and acts as the federal government’s agent for eligible recipients to acquire federal surplus property.

Surplus is centrally managed out of the administrative office in Atlanta, which is located at:

200 Piedmont Avenue, S.E.
Suite 1804 West Tower
Atlanta, Georgia 30334-9010

Phone: 404-657-8544
Fax: 404-463-2912
Email: surplus.property@doas.ga.gov

For more information, visit the Surplus Division page. 

A review of the key property management life cycle process and roles should provide background for how decisions about surplus property are made.

1. Property Management Life Cycle
   1. Needs assessment and requirements definition: What do we need?
   2. Procurement: Did we acquire the best value for the need?
   3. Utilization and property tracking: Are we using it efficiently?
   4. Disposal: What is the best manner of disposal?
2. Property Roles of the State and State Agencies
   1. State’s property role: All property purchased by or donated to the State, regardless of the funding source is
      owned by the State. As the owner, the State has final decision-making authority over all property management aspects, especially procurement and disposal. (Ownership is defined as “having a legal, rightful title to property.”)
   2. State agencies’ property role: As good stewards of taxpayer funds, all state agencies and employees are responsible and accountable to ensure that state personal property is utilized, tracked, and disposed of in an efficient and effective manner.
3. Surplus Property: The state’s surplus property management process addresses the final step of the property life cycle. Once a state entity no longer has a use for property, DOAS Surplus Property Division is responsible for determining the best utility of that property, which could include inter-entity transfer, sale, or destruction. Understanding key parts of property management helps agencies make informed decisions regarding surplus property.
    

A full glossary is available for this manual, but the key terms for this section are real property, personal property, capital assets, and surplus property. 

The purpose of this section is to provide the legal authority for state surplus property in the State of Georgia, as set forth in the Official Code of Georgia Annotated (O.C.G.A.). The numbers listed refer to the specific title, chapter, and section of the code.

50-5-140: Department to request lists of surplus property: 

• It shall be the duty and responsibility of the head of each department, institution, or agency of the state to furnish, upon written request by the Department of Administrative Services on such forms as provided by it, a list of all surplus personal property held by that department, institution, or agency at the time of the request. These requests may be made by the Department of Administrative Services as often as it deems necessary.

50-5-141: Transfer, sale, trade, or destruction authorized; prohibition of certain employee purchases

• (a) The Department of Administrative Services is authorized and it shall be its duty to dispose of surplus property by one of the following means:(1) Transfer to other state agencies;
  • (2) Sell to the highest responsible bidder for cash;
  • (3) Sell by fixed price; provided, however, that surplus property sold by fixed price shall have been originally purchased by the state for an amount of $5,000.00 or less;
  • (4) Trade in such surplus property on the purchase of new equipment if the Department of Administrative Services shall determine that such action is for the best interest of the state; or
  • (5) Where the Department of Administrative Services shall determine that the surplus property has no value or that the cost of maintaining and selling the surplus property exceeds the anticipated proceeds from the sale of the surplus property, by destruction and disposal and order of removal from the inventory of the department, institution, or agency with such action noted thereon.
• (b) No employee of the Department of Administrative Services or such employee's immediate family member shall purchase surplus property sold by fixed price or negotiated sale; nor shall any person purchase surplus property by fixed price or negotiated sale for the direct or indirect benefit of any such employee or employee's immediate family member.

50-5-142: Commissioner to promulgate rules and regulations

• The Commissioner of Administrative Services shall promulgate such rules and regulations as may be required to carry out Code Sections 50-5-140, 50-5-141, 50-5-143, 50-5-144, and 50-5-146 and shall establish procedures for the disposition of surplus property, including the manner whereby the sale of surplus property shall be advertised and competitive bids for the purchase thereof shall be secured.

50-5-143: Transfer to political subdivision by negotiated sale; conditions

• (a) As used in this Code section, the term "political subdivision" means any county or municipality or any county or independent board of education.
• (b) In addition to the authority provided in Code Section 50-5-141, the Department of Administrative Services shall be further authorized to dispose of surplus property by the transfer of the property to any political subdivision through a negotiated sale if the Department of Administrative Services determines that such sale would be in the best interests of the state, and, under the circumstances, the negotiated sales price would constitute a reasonable consideration for the property.
• (c) When any surplus property is transferred to a political subdivision, pursuant to subsection (b) of this Code section, such transfer shall be subject to the following conditions:
  • (1) The property shall not be resold by any such political subdivision within one year after the transfer without the written consent of the Department of Administrative Services; and
  • (2) The Department of Administrative Services shall have the right, which shall be exercised at its discretion, to supervise the resale of the property at public outcry to the highest responsible bidder if the resale of the property is within one year after such transfer.

50-5-144: Transfer to charitable institutions or public corporations by negotiated sale; conditions

• (a) As used in this Code section, the term:
  • (1) "Charitable institution" means any nonprofit tax-exempt person, firm, or corporation.
  • (2) "Public corporation" means any public authority or other public corporation created by or pursuant to the laws of any state.
• (b) In addition to any other authority provided by Code Sections 50-5-140 through 50-5-143, this Code section, and Code Section 50-5-146, the Department of Administrative Services shall be authorized to dispose of surplus property, including surplus property subject to paragraph (7) of Code Section 50-5-51, by the transfer of the property to any charitable institution or public corporation through a negotiated sale if the department determines that such sale would be in the best interests of the state, and, under the circumstances, the negotiated sales price would constitute a reasonable consideration for the property.
• (c) When any surplus property is sold to a charitable institution or to a public corporation pursuant to subsection (b) of this Code section, the sale shall be subject to the following conditions:
  • (1) The property shall not be resold by the purchaser within one year after the sale without the written consent of the Department of Administrative Services; and
  • (2) The Department of Administrative Services shall have the right and obligation to supervise the resale of the property at public outcry to the highest responsible bidder if the resale is within one year after the sale and, if the resale price exceeds the original negotiated sales price, the amount of the excess shall be paid to the Department of Administrative Services.

50-5-145: Limited application of provisions

• Nothing contained within Code Sections 50-5-140 through 50-5-144 and 50-5-146 shall be construed so as to apply to any real property owned by the state, and such Code sections shall not apply to such property, nor shall such Code sections be construed so as to prohibit the Attorney General from distributing or selling the published reports of the opinions of the Attorney General.

50-5-146: Penalty

• Any person who causes state property having a value of less than $200.00 to be disposed of in violation of this article shall be guilty of a misdemeanor. If such property has a value of $200.00 or more, he or she shall be guilty of a felony and, upon conviction thereof, shall be punished by imprisonment for not less than one year nor more than five years.

The purpose of this section is to provide reference to the legal authority for the acquisition and use of federal surplus property in the State of Georgia as primarily set forth in 41 CFR 101-42.000, 101-43.000, and 101-45.000; and cross-referenced to the Federal Management Regulation (FMR) (41 CFR chapter 102, parts 102–1 through 102–220).

50-5-51: Power, authority, and duty of department 

• The Department of Administrative Services shall have the power and authority and it shall be the department's duty, subject to this part: …
  (7) To establish and operate the state agency for surplus property for the purpose of distributing surplus properties made available by the federal government under Pub. L. 152, 81^st Congress, as amended, to institutions, organizations, agencies, and others as may be eligible to receive such surplus properties pursuant to applicable provisions of federal law. The commissioner may enter into or authorize the aforesaid state agency for surplus property to enter into cooperative agreements with the federal government for the use of surplus properties by the state agency. The commissioner is authorized to enter into contracts with other state, local, or federal agencies, or with other persons with respect to the construction, operation, maintenance, leasing, or rental of a facility for use by the state agency. Further, the commissioner may acquire real or personal property for such purposes;

Key regulations associated with federal surplus property:

• 41 CFR 102 Subchapter B: Personal Property
  • 102-33.5 to 102-33.460 (Management of Government Aircraft)
  • 102-34.5 to 102-34.350 (Motor Vehicle Management)
  • 102-35.5 to 102-35.30 (Disposition of Personal Property)
  • 102-36.5 to 102-36.475 (Disposition of Excess Personal Property)
  • 102-37.5 to 102-37.580 (Donation of Surplus Personal Property)
  • 102-38.5 to 102-38.370 (Sale of Personal Property)
  • 102-39.5 to 102-39.85 (Replacement of Personal Property Pursuant to the Exchange/Sale Authority)
  • 102-41.5 to 102-41.235 (Disposition of Seized, Forfeited, Voluntarily Abandoned, and Unclaimed Personal Property)