10.3 Direct Negotiated Sale

10.3 Direct Negotiated Sale

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3 years 6 months
Submitted by jon.suggs@doas… on

A direct negotiated sale (DNS) is used for redistribution from a state entity directly to an eligible local government or nonprofit. 

There is always a fee for a DNS. When discussing property with the receiving entity, do not promise it for free or a nominal fee (e.g., $1). Price and conditions are established by the Surplus Property Division, which must approve the transaction, generate the invoice, and collect the funds. The price must constitute a reasonable consideration for the property and is established by comparing market value, quantity, condition, and any extenuating circumstances.

  1. The custodian entity enters a transaction request in Asset Works, selecting Transfer as the method.
  2. The entity manager approves the transaction.
  3. Surplus virtually receives the request and verifies the receiving entity's eligibility.
  4. Surplus completes the transfer in Asset Works.
  5. The custodian entity completes the physical transfer.
  6. The receiving entity adds the asset to its property inventory records.
  7. The surplussing entity removes the asset from its property inventory records.

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

  1. Property may only be used for official entity purposes; personal use is prohibited.
  2. Only donee employees listed on 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, and appropriateness for donee use.
  4. Property acquired must be used by the donee organization for the intended purpose.
  5. Property title and ownership must be maintained by the donee for the restriction period. Property may not be sold, traded, loaned, cannibalized, or destroyed without permission from Surplus Property Division.

The Surplus Property Division may conduct utilization visits any time during the restriction period. Donees found to be noncompliant may be required to return the property, forfeit the service fee paid, and/or have accessorial fees assessed at the discretion of the Department of Administrative Services.