BPM-308 Resale, Sale, or Disposal
Revised October 20, 2010
Items for Resale
Unless specifically addressed and provided for elsewhere in this manual, items for resale must be acquired through Procurement. Policy guidelines may permit waiving the bid process in some cases.
Sale of Agricultural Commodities
The sale and the proposed method of sale of any agricultural commodity (i.e., grain, livestock, poultry, fruit, timber or other items produced from agricultural activities) requires prior approval of the Chief Procurement Officer. Sales of timber, mineral or other natural resources have additional requirements (see below).
Method of Sale
Wherever possible, competitive bids will be taken. If competitive bids cannot be taken due to the perishable nature of the commodity or if climatic conditions, market fluctuations, or agriculture practices restrict bidding procedures, prior written justification for the sale must be approved in writing by the Chief Procurement Officer.
Timber, Mineral, or Other Natural Resources Sales
Sales of all timber, mineral, or other natural resources must be in accordance with the following State Statute:
RSMo 172.020. "The curators shall not sell, trade or otherwise convey or permit the severance of timber, minerals or other natural resources, unless the curators comply with bidding procedures established by rule that mandate notice of the transaction be provided in a manner reasonably calculated to apprise prospective purchasers. Such rule or rules must at a minimum require at least one notice of the transaction be published in a newspaper of general circulation where the resources are located.”
Disposal of Surplus Property
Any department or division within the University, upon determining that an item is surplus to its needs, shall complete UM Form 27 (Property Inventory and Change Report) and forward it to University Surplus Property.
The department chairperson or administrative head shall be responsible for appropriately preparing the surplus property for disposal prior to transfer to University Surplus Property. Such tasks as removal and disposal of hazardous, biohazard, and/or radioactive components of the equipment shall be included in this preparation.
In order to ensure that licensed software and other sensitive information are removed, electronic storage devices must be completely wiped prior to transfer. Such devices include, but are not limited to desktop and laptop computers, copy/scanning/fax machines, servers, cell phones, SmartPhones, PDAs, digital cameras, and other hard drives.
Disposal of Property Associated with External Sponsors
All property and equipment purchased or constructed with external funding, or provided by an external sponsor, regardless of whether the title is retained by the sponsor or the University, may only be disposed of in accordance with the terms and conditions of the external sponsor’s requirements. Such property will be identified by a decal or tag of a different type and/or color than that affixed to University owned equipment.
If the item being disposed is "tagged" as externally funded, the disposing department or division must complete and sign the UM Form 27 as well as secure the approval and sign-off of the Campus Sponsored Program Office (SPO). Before disposal of federally funded equipment, a request for disposal must be made of the Federal awarding agency by the SPO. If the awarding agency has not responded within 120 days, then the University may dispose of the equipment. Upon approval for disposal or the passing of 120 days with no response from the awarding agency, the UM Form 27 will then be forwarded to University Surplus Property, which will initiate necessary inventory record adjustments and coordinate disposal.
All proceeds from sale of federally funded equipment of $5,000 or more must be remitted to the federal sponsor after deducting $500 for University processing and handling compensation. Sales of externally funded equipment from non-federal sponsors must be made in accordance with the terms and conditions of the award.
Sale Within the University
University Surplus Property shall offer surplus items to other departments/divisions within the University, including other campuses where appropriate. Sale price shall be as agreed upon by University Surplus Property and the buying and selling departments.
Sale Outside the University
NOTE: Any assets purchased with funds provided from external sponsors must follow additional procedures discussed above in the section Disposal of Property Associated with External Sponsors.
If no need exists in other departments or divisions, or other campuses as determined by University Surplus Property, the value of the item will be determined by University Surplus Property, and the property will be disposed of by the following methods:
- Items valued at less than $100 may be sold by University Surplus Property by direct sale, auction or sealed bids.
- Items valued at more than $100 will be sold by public auction or sealed bids unless the Chief Procurement Officer determines it is in the best interests of the University to sell by other methods.
Sale of Salvage Obtained Through Claims Settlement
Property, such as damaged vehicles or equipment, obtained as a result of settlement of a claim handled by Risk and Insurance Management, may be sold by whatever means Risk and Insurance Management determines is in the best interests of the University.