SECTION 260:105-5-2. Disposal by other than a surplus property agent

(a)   Transfer to another state agency or authorized entity. A state agency may determine that the direct transfer of state property to another state agency or authorized entity, with or without remuneration, is in the best interest of the state and request approval of such transfer from the Administrator.

(1)   Official approval must be received prior to the transfer of state property. A request to transfer state property shall be made according to 260:105-3-1(d).

(2)   The transferring agency is responsible for obtaining a signed receipt for all property transferred pursuant to this section, in addition to maintaining a record of all property transferred. Records shall include, but are not limited to:

(A)   Itemized list of property transferred;

(B)   Reason for transfer;

(C)   To whom property is transferred;

(D)   Inventory number of property transferred;

(E)   Acquisition cost, if known; and

(F)   Estimated value at time of transfer.

(3)   Whenever a state property transfer between two state agencies requires remuneration for the state property, all receipts and remittances required to effect such transactions shall be processed through the special cash fund created by 74 O.S., Section 62.5.A.

(b)   Sealed bid or public auction. A state agency may elect to sell surplus property by sealed bid or public auction without using the services of a surplus property agent and request approval of such sale from the Administrator.

(1)   Official approval must be received prior to the sale of surplus property by a state agency. A request to sell state property shall be made according to 260:105-3-1(d). Sealed bids shall be conducted in accordance with the Oklahoma Central Purchasing Act.

(2)   A public auction may be conducted utilizing the services of such state agency employees or by contracting with a professional auction service in accordance with 74 O.S., §85.1 et seq. and Subchapter 15 of this chapter.

(3)   A state agency is responsible for maintaining a record of all property it sells or disposes of pursuant to this subsection which shall include, but not be limited to:

(A)   Name of the selling agency;

(B)   Date of the sale;

(C)   Method of sale;

(D)   Selling price of property; and,

(E)   Name and address of buyer.

(c)   Trade in. A state agency may determine it is in the best interest of the state to trade in property it owns to receive credit towards the purchase of new property and request approval of such trade in from the Administrator.

(1)   Official approval must be received prior to trading in state property. A request to trade in state property for credit against the purchase of new state property shall be made according to 260:105-3-1(d).

(2)   In addition to the information required by 260:105-3-1(d), the following information must be submitted to the Administrator for approval:

(A)   Description of the item to be purchased;

(B)   Cost of the new item;

(C)   Value to be allowed for the state property; and,

(D)   Name and address of vendor offering the replacement property.

(3)   The Administrator will review the request and determine whether to approve, conditionally approve or deny the trade in of the state property. Written notification of such determination which shall set forth conditions for approval or reasons for denial of the request will be sent to the state agency.

(d)   Scrap. A state agency may determine that property it owns is worn out, damaged, disassembled or in poor condition in such a manner that renders it of no value and request approval to abandon, destroy or sell the property as scrap from the Administrator.

(1)   Official approval must be received prior to the abandonment, destruction or selling of state property for scrap. A request to abandon, destroy or sell state property for scrap shall be made according to 260:105-3-1(d).

(2)   In addition to the information required in the surplus property form [See 260:105-3-1(d)], a detailed statement of the condition and quantity of such state property which would be useful to the approval process must be submitted to the Administrator for consideration.

(3)   The Office will send written notification to the agency that:

(A)   A determination was made that some reasonable value can be obtained from the sale of the property as scrap which must be coordinated by a state surplus property agent; or

(B)   A determination that there is no value either for salvage or for spare parts; whereas, authorization may be given to abandon or destroy the property in a manner designated or coordinated by a state surplus property agent.

(e)   Prohibitions. A state agency shall not arrange sales to individuals or non-state agencies.

[Source: Added at 31 Ok Reg 1516, eff 9-12-14]