Purchasing Policy and Procedure
Article 9 section 7 of the Arizona constitution states "Neither the
State, nor any county, town, municipality, or other subdivision of the
State shall ever give or loan its credit in the aid of, or make any
donation or grant, by subsidy or otherwise, to any individual,
association, or corporation, or become a subscriber to, or a shareholder
in, any company, or corporation, except as to such ownerships as may
accrue to the state by operation or provision of law."
State statutes and ABOR code require that the Director of Procurement
develop policies and procedures governing:
The acquisition and distribution of federal surplus materials.
The sale, lease or disposal of surplus materials by public
auction, competitive sealed bidding or other appropriate method.
The purchase of any such materials by an employee of the
The transfer of excess and surplus materials.
The trade-in of excess or surplus materials.
AUTHORITY TO DISPOSE OF SURPLUS UNIVERSITY PROPERTY
University property may be disposed of only by trade-in on other
equipment, by sales between departments, by transfers to another
department or Surplus Property. The Surplus Property Manager has been
delegated authority in all matters pertaining to the disposition of
excess and surplus materials. The Surplus Property Manager shall be
notified of all excess and surplus materials and shall be responsible
for determining the fair market value of excess and surplus property.
University personnel may not transfer, sell, trade-in, condemn, donate,
cannibalize, or otherwise dispose of materials owned by the University
without prior written authorization of the Surplus Property Manager.
ACCEPTABLE DISPOSAL OF UNIVERSITY PROPERTY
The Surplus Property Manager shall facilitate the transfer of excess or
surplus materials to or between other State agencies, other units of
government and eligible nonprofit institutions. The property transfer
document shall state that the recipient agrees not to transfer title or
dispose of the material within a six (6) month period without prior
written approval of the University.
Surplus materials shall be offered for sale through competitive sealed
bids, public auctions, established markets, or posted prices. If unusual
circumstances render the above methods impractical, the Director of
Procurement may employ other disposition methods, including appraisal or
barter, provided such officer makes a written determination that the
selected method is advantageous to the University. Only United States
Postal Money Orders, certified checks, cashiers' checks, cash or
personal checks with ID shall be accepted for sales of surplus property,
unless approved by the Surplus Property Manager.
TRANSFERRING SURPLUS PROPERTY
Each department shall notify the Surplus Property department when there
is equipment or materials for disposal. The Surplus Property department
will receive surplus property/equipment which is in acceptable condition
for reuse or resale. Departments will be given instructions for
disposing of goods which are deemed unacceptable.
The Surplus Property staff receives the property by scheduling a pick up
or arranging for the items to be dropped off at the warehouse, located
in Building 47A. Larger shipments may require the department
coordinate drop off of surplus property with the NAU Moving Department.
Property Control Authorization (PCA) form shall be completed for items
transferred to Surplus Property for disposal. Both Surplus Property and
the department turning in property must sign the PCA form. (Property
SALE OF SURPLUS PROPERTY
The Surplus Property Manager shall give first priority to placing
surplus property back into use at the University, and, therefore, some
surplus is designated for University use only and is not available for
public purchase. Some items may be designated for auction sale only,
because they are in high demand or because this method will generate the
Surplus property may only be offered for sale to the public after it has
been held for fifteen (15) days, exclusively for reuse within the
SALE OF SURPLUS PROPERTY TO UNIVERSITY DEPARTMENTS
The Surplus Property department provides the University a cost-effective
alternative to purchasing new products. Surplus items in demand with the
campus community are cleaned and small repairs are completed in order to
supply property in good condition. University needs are placed above
public sales. Surplus Property may purchase office furniture for
University departments through State Surplus and Federal Excess Property
channels and also used merchandise outlets. A "want list" is maintained
for needed surplus equipment. Departments on the list are contacted when
the equipment required is found or received.
Departments may come to Surplus Property warehouse and select
merchandise. A PCA form is completed for the purchase by a Surplus
Property staff member and a delivery time and date is scheduled. Surplus
Property will request an Dept/Unit and an authorized signature on the
PCA form, and the department will receive a copy of the completed form.
An interdepartmental billing will then be processed within one (1) month
of purchase. The PCA number will be referenced on the interdepartmental
SALES OR TRANSFERS BETWEEN DEPARTMENTS
Departments may sale or transfer surplus property to another NAU
department. In the event the surplus property is capital asset tagged,
a PCA form must be completed and submitted to Property Administration.
SALE OF SURPLUS PROPERTY TO THE PUBLIC
Purchases are handled on a cash and carry, first come-first served
basis. Applicable sales tax will be charged. A receipt for the purchase
will be completed in Surplus Property and a copy given to the buyer.
SALE OF SURPLUS PROPERTY TO UNIVERSITY EMPLOYEES
Employees of the University may purchase surplus property offered for
sale to the public except that an employee of the University shall not
directly or indirectly purchase or agree with another person to purchase
surplus property if said employee is, or has been, directly or
indirectly involved in the purchase, disposal, maintenance, or
preparation for sale of the surplus material. Any University employee
may bid on surplus property at public auction.
COMPETITIVE SEALED BIDDING
This type of sale is held for specialized equipment of considerable
value with limited market appeal. Extensive research is performed to
establish as large a market as possible. A required legal advertisement
is placed in a local newspaper. Other advertising options are also
researched in order to reach as many prospective buyers as possible.
The bids are received at the Surplus Property office and opened at a
designated date and time as listed in the bid packet. Bids that are
less than the posted minimum price will not be accepted.
Surplus Property completes the necessary paperwork and collects the
money. Upon receipt of the funds from the buyer, the department will be
credited for its portion of the sale.
the event more than one individual is interested in purchasing surplus
property on the day the item becomes available for public, a spot bid
process will be conducted. This entails each interested party submit
their written bid. Bids are opened immediately and awards made on the
Auctions shall be advertised with such advertisement to be no less than
six (6) days prior to the auction date. When making sales by auction,
the auction notice shall specify all the terms and conditions of any
sale. Auction advertising is handled through various media, including
television, radio and local/outlying area newspapers. Equipment and
materials received which are designated to be sold by public auction are
tagged and displayed in the Surplus Property warehouse.
The auctioneer is informed of those items requiring a minimum bid,
before the auction date. The Surplus Property staff and/or the
auctioneer notify prospective buyers of the upcoming sale of
specialized/valuable items to ensure competitive bidding. At the start
of the auction the auctioneer is required to announce the conditions of
sale. The auctioneer will also identify, as it is auctioned, any item
requiring a minimum bid.
Approximately two (2) weeks after an auction, sales receipts are
evaluated to determine the amount of funds to be transferred to campus
departments from the sale of their surplus items. Interdepartmental fund
transfers to departments entitled to auction reimbursements are usually
completed within four to six (4-6) weeks after an auction.
Departments are reimbursed in accordance the approved Surplus Property
Public sales include all items that have become available for public
sale and are sold at the posted price.
SURPLUS PROPERTY DEPARTMENT FEES
The Surplus Property Department will charge the approved fee for
disposal of excess and surplus materials. For items sold by auction,
the auctioneer’s fee is deducted. For sealed bid sales, the legal
advertisement fee is deducted from the departmental refund.