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Resale, Sale or Disposal of University Property

About this Policy

Resale, Sale or Disposal of University Property

Policy Number: 24013


Effective Date:
December 12 2017

Last Updated:

Responsible Office:
UM System Supply Chain

Responsible Administrator:
Chief Procurement Officer

Policy Contact:

UM System Supply Chain

Categories:
Finance
Property and Real Estate


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Scope

This policy provides guidance for the sale or resale of items by the University as well as disposal of University property.

Reason for Policy

To ensure requirements for bid are met and University policy and state statute are followed.

Policy Statement

Sale or Resale
Items for sale or resale must be bid or acquired through UM System Supply chain, unless specifically addressed elsewhere within the University policies.  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.  In certain situations, the bid process may be waived.

The following have certain requirements for the sale of the items:

  • Agricultural Commodities – the sale and 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. 
  • Timber, Mineral, or Other Natural Resources – must be sold in accordance with RSMo 172.020 which requires advertisement and bids.
     

Disposal of University Property
Any department or division that needs to dispose of University property must send a disposal request to the University’s Surplus Property unit.  The department chairperson or administrative head shall be responsible for appropriately preparing the 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.

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.  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 or designee determines it is in the best interests of the University to sell by other methods.

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.

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 secure the approval and sign-off of the Campus Sponsored Program Office (SPO). 

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.

Definitions

Property - as referenced herein, refers to the State of Missouri’s definition of personal property.  Every tangible thing being the subject of ownership, or part ownership, by the University of Missouri Board of Curators, whether animate or inanimate, other than money, and not forming part or parcel of real property.

Accountabilities

UM System Supply Chain:

  • Facilitate bidding on sale or resale on applicable items

UM System Surplus Property:

  • Receive property for disposal from departments and put up for sale as indicated above

Departments:

  • Seek approval as necessary for the sale or resale of items
  • Ensure all property is prepared for disposal prior to transferring to Surplus Property
  • Send disposal requests to Surplus Property
  • Follow external sponsor terms and conditions for disposal of property that were externally sponsored

Additional Details

Forms

Surplus Property forms:

UM Form 27
UM Form 31
UM Form 48

Related Information

Surplus Property Information: https://www.umsystem.edu/ums/fa/procurement/surplus#forms

Missouri Revised Statutes 172.020

History

This policy combines the following former policies:

  • Business Policy Manual 308 – Resale, Sale, or Disposal (revised 10/20/2010)
  • Purchasing Policy Manual 701 – University/Sale/Resale/Disposal

Procedure