This information is provided so state entities will have a better understanding of the disposal options available, and how surplus property can be used by other eligible recipients.  

It is not intended to replace donee eligibility regulations or utilization and compliance restrictions or any other applicable laws or regulations. 

Georgia’s Surplus Program is not an entitlement program.  

Eligible program participants are called “donees.” Donee eligibility is determined on a case-by-case basis in accordance with state and federal laws and regulations. Interested entities must complete the appropriate eligibility application process and must comply with the requirements of periodic updating to retain their eligibility. The following classifications of entities will be considered for participation: 

• All state government agencies, commissions, authorities, and universities are eligible to receive state and federal surplus property. State entities (primarily authorities) authorized by law and electing to manage their own property disposal are still eligible to receive state and federal surplus. However, such transactions will be conducted the same as for a local government, and state property will be conveyed as a Direct Negotiated Sale.
• All local government (county, city, town, etc.) entities are eligible to participate in state and federal surplus property programs.
• Nonprofit organizations classified by the Internal Revenue Service (IRS) as 501 (c) organizations may be considered to receive state and federal surplus property.
• Veteran Service Organizations (VSO) designated by the Secretary of the federal Department of Veterans Affairs are eligible to participate in the federal surplus property program and may be eligible for the state program depending on their business status and service(s) provided.
•  Service Education Activities (SEA) designated by the Secretary of Defense may be eligible for federal DOD property.
• Small Business Administration (SBA) 8A program participants may be eligible to participate in the federal surplus property program. Eligibility is established by the SBA.

5.2(a) Direct negotiated sales to out-of-state political subdivisions and charitable institutions are processed on a case-by-case basis. These customers are not considered eligible program participants, except under limited circumstances where Surplus has determined such a sale would be in the best interest of the state. 

For state surplus property, redistribution is defined as transfers between state entities and/or direct negotiated sales to eligible donees and vendor returns.

In keeping with the mission of equitable and appropriate redistribution of surplus property, the following order of precedence will be generally adhered to for the redistribution of all state surplus property:

1. State Entities
2. Municipal Government Agencies
3. Eligible Nonprofit Organizations (including VSO)
4. Service Education Activities (federal DOD property only)
5. Small Business Administration (federal property only)

Consistent with their fiduciary responsibility, entity heads must: 

1. Establish entity policies, procedures, and systems for the appropriate procurement and tracking of personal property.
2. Delegate responsibility and authority for property oversight to their entity Property Coordinator (PC).
   1. PC is designated by an entity head and is responsible for the entity’s property management. In some agencies, responsibility for vehicle management is delegated to a Fleet Manager.
   2. For the purposes of property transfer or disposal, the PC is the primary entity contact, and will always hold the surplus designation as an “authorized” user.
3. Ensure compliance with the Georgia State Properties Commission policy (SPC: 01 Asset Management: Proper Shutting Down of Vacant Buildings) in the disposal of assets related to a building closure.
4. Surplus employees do not have access to entity asset inventory management tracking systems. It is the individual entity’s responsibility to update their property and asset disposition records for audit purposes.
    

1. Donees
2. Surplus Authorizations
   1. Authorized User 
      1. Has authority to conduct all matters of business pertaining to the acquisition, utilization, and disposal of surplus. Can obligate entity funds.
      2. Delegates entity personnel as Property Selector.
      3. Entity heads are always Authorized Users. 
   2. Property Selector
      1. Authorized to select property and obligate entity funds.
      2. May not authorize other entity personnel.

Notes: 

• Agencies may have more than one Authorized User.
• Surplus maintains lists of other key entity officials, such as the entity head and Chief Information Officer (CIO), for the disposal of electronic materials.

For a period of 12 months from the date of transfer, all state surplus property is subject to the following restrictions:

1. Property may only be used for official entity purposes; personal use is not authorized.
2. Only donee employees listed in the entity selector list may sign for receipt of property.
3. The state reserves the right to approve or deny property transfers based on equitable and appropriate redistribution. Appropriateness for donee use is also assessed. Property acquired must be used by the donee organization for the intended purpose. Personal use of donated property is prohibited. 
4. Property title and custody must be maintained by the donee for the restriction period. Property may not be sold, traded, loaned, cannibalized, or destroyed without permission from Surplus.
5. Surplus personnel may conduct utilization visits any time during the restriction period. Donees found noncompliant may be required to return the property, forfeit the service fee paid, and/or have accessorial fees assessed at the discretion of DOAS.

State employees other than DOAS employees are permitted to participate in the public sale of surplus property. To prevent the appearance of impropriety and in keeping with the Governor’s Code of Ethics, DOAS employees and their immediate family members are prohibited from participating in any sale, auction, or transfer of surplus property to the public. [O.C.G.A. 50-5-141(b)]

All other purchasers (including but not limited to state employees and their family members) must certify that any transactions in which they are involved do not and will not violate the provisions of O.C.G.A. 45-10-20 in any respect.

A state entity may offer the opportunity for state employees to purchase state property that is being disposed of if the expected return is less than $50. If the expected value of the property is greater than $50, a state entity should submit the item to public auction, in which state employees can also participate.

See 14.4 Electronic Disposal Options for special instructions on the sale of electronic equipment.

DOAS retains only the funds needed to operate the program and will return the remaining proceeds to all state agencies utilizing the program in an equitable manner.

The expected reimbursement rate will normally range between 40-60%. The reimbursement rate is evaluated each fiscal year and adjusted, if necessary, to cover fluctuating operating expenses. Reimbursement payments to agencies will be made through monthly ACH payment. 

The parameters for calculating payments are:

• The first $100 of all transactions (by piece or lot) will be retained by DOAS as a basic service charge.
• All inter-agency transfers of state assets will be conducted at zero cost.
• If there are excess funds which more than cover operating costs at fiscal year-end, DOAS will conduct a “true-up” and reimburse all participating agencies during that fiscal year on a pro-rata basis based on total transactions.
• Proceeds of high value assets -- for example heavy equipment or aircraft -- after the first $100 will be processed as follows:

• Sale Amount	Percent to Entity	Surplus Cap
  $101 to $9,999	55%	N/A
  $10,000 to $49,999	75%	$7,500
  $50,000 or more	90%	$10,000

• Agencies are responsible for transportation and equipment preparation fees (e.g. decal and “wrap” removal, towing, etc.).
• There is no reimbursement for the disposal of “scrap” electronics. (See Chapter 14 for additional information.)

“Direct Negotiated Sales” to donees are technically a donation with a service charge. This stems from the fact that transfer of property title (ownership) does not occur until certain conditions are met as stated in Section 6.3. Property title transfers to public buyers as soon as payment is received, and the item is removed. 

The following chart describes the conditional restriction period: