Chapter 8: Overview of Disposal Process

Once a state entity decides that property is no longer needed, Surplus will work with the entity to ensure that the selected disposal method returns the most value to the state. According to state law, there are five basic disposal options:

  1. Transfer between state entities
  2. Negotiated sale to eligible donees
  3. Trade in on the purchase of new equipment
  4. Sale to the public through a bidding process
  5. Destruction

The disposal process typically flows through the following transaction options:

  • Redistribution (Transfer, Direct Negotiated Sale, Vendor Return)
  • Public Sale (Internet Auction, “Retail” Sale, Live Auction, Other)
  • Destruction/Disposal

The disposal process is managed for each individual piece of property and entity. Depending on the situation, these processes and other disposal methods may be employed as necessary and in any order. The Surplus Division is responsible for determining the disposal method that is in the state’s best interest. Not all property will be offered for transfer to state entities.

Note: Regardless of the type, all requests for disposal authorization must be received prior to the actual disposal. Requests after-the-fact will not be authorized.

The actual disposal process for all the transaction types is comprised of four basic steps:

  1. State entity enters the transaction request with market quality photos into the Asset
    Works (AW) system.
  2. Surplus virtually receives the property and determines the best disposal method.
  3. Surplus conducts the transaction(s); entity is notified throughout the process by the AW
    system. State entity releases/disposes of property.
  4. Once disposed of, the entity references the AW transaction number as authorization to remove the asset from its inventory.

Typically, this process takes 10-22 business days, depending on the type of transaction, the accuracy of the information provided by the entity, and other factors. The public sale option has the longest turnaround time, as it goes through the following steps:

  1. Surplus receives transaction in Asset Works (1-2 business days)
  2. Surplus posts the property to the DOAS website (5 business days)
  3. Surplus posts the property for public sale (3-5 business days)
  4. Buyer pays and removes the property (5-10 business days)

This represents the “typical” sales process timeframe. Depending on circumstances, some transactions may be processed in as little as one day, while others may be intentionally held for longer periods to allow for marketing or other reasons that are in the state’s best interest.