Purchasing and Business Services Manual (PUR)

Interim Posting

Note: At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.


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Effective: 7/1/1980

Revised: 11/12/2014

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PUR 602–02: Trade-Ins

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Purpose

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To define the method of disposing of university property by trade-in

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Sources

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Arizona Board of Regents Policy Manual - 3-807
Purchasing and Business Services
Financial Services

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Policy

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Acceptable Disposal of University Property

University property may be disposed of only by trade-in on like equipment, by sales between departments, or by transfers to another department or to Surplus Property.


Trade-Ins

Obsolete, worn out, inactive, or uneconomical operating equipment may be traded in on the purchase of equipment of the same general nature. Property should not be traded in if the monetary allowance offered is substantially below the known current market price or if the end result is not in the interest of the university.

Role of the Department with Property to Be Traded In

The requisitioning department will submit a requisition for the new equipment and a Property Relocation Authorization (PRA) form for the old equipment. The PRA will list the equipment to be traded in with full description, condition, location where it may be inspected, and ASU property control number.

The procedure for submitting requisitions and transfer forms is outlined in the Property Control System Policies and Procedures Manual—PCS 501, “Relocating Equipment within a Department.”

Role of Property Control

The requisition and transfer form will be processed through Property Control. All property identified for trade-in will be screened by Property Control to determine title and residual rights of any external agency before trade-in may occur. After screening, the requisition and transfer form will be forwarded to Purchasing and Business Services.

Role of Purchasing and Business Services

The Purchasing and Business Services buyer will follow the normal procurement procedures.

New Equipment Costing $100,000 or More
If the cost of the new equipment is estimated to be $100,000 or more, formal sealed bids will be requested. The solicitation should include:
  1. a complete description of the equipment
  2. the location where the equipment can be inspected
  3. a statement that the trade-in is “as is, where is” with no guarantee by the university as to operating condition
  4. a request for separate quotes on the new equipment and the trade-in equipment

    and

  5. a statement that the university reserves the right to accept or reject the trade-in price.

If the trade-in price is accepted, award shall be based on net price after trade-in.

New Equipment Costing Less than $100,000 but at Least $50,000
If the cost of the new equipment is estimated to be less than $100,000 but at least $50,000, informal bids will be requested. The solicitation will include the same information as listed under New Equipment Costing $100,000 or More.
New Equipment Costing $50,000 or Less
If the cost of the new equipment to be purchased is $50,000 or less, the Purchasing and Business Services buyer may:
  1. negotiate both the price on the new equipment and a trade-in price

    or

  2. request competitive bids following the procedure outlined above.
Trade-In Price as a Determiner of Buyer Action
If the trade-in price received from the most responsive and responsible bidder is below known market price, the buyer will notify the requesting department. The buyer, in cooperation with the requesting department, will determine whether to accept the trade-in price as quoted or turn in the material to Surplus Property for disposal or other university use.

If the trade-in price is acceptable, the buyer will issue the purchase order. The purchase order will show the trade-in as a separate item listing the ASU property control number and the trade-in value.


Sales Between Departments

If the item to be disposed of can be used by another department on campus willing to pay the trade-in price, a sale can be effected. A transfer of funds between departments may be requested according to Financial Services procedures.

Sales of equipment between departments must be done according to policies and procedures outlined in the Property Control System Policies and Procedures Manual.


Transfers

Transfers of property that do not include a sale to another department or a trade-in will follow procedures outlined in the Property Control System Policies and Procedures Manual.

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Cross-References

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For information on bidding, see:

  1. PUR 303–03, “Preparation of Specifications and Response Evaluation Criteria”
  2. PUR 305–01, “Bidding Requirements for Procurements Costing Less than $50,000”
  3. PUR 305–02, “Bidding Requirements for Procurements Costing at Least $50,000 but Less than $100,000”
  4. PUR 306–01, “Bidding Requirements for Procurements Costing $100,000 or More”
  5. PUR 306–02, “Waiver of Bidding Requirements for Procurements Costing $100,000 or More”
  6. PUR 501–01, “Information to Suppliers”
  7. PUR 501–02, “Advertising for Bids”

    and

  8. PUR 501–03, “Bid Security and Performance and Payment Bonds.”

For information on property transfers, see the Property Control System Policies and Procedures Manual—PCS 502, “Transferring Equipment between Departments at Zero Cost.”

For information on property trade-ins, see the Property Control System Policies and Procedures Manual:

  1. PCS 101, “Capitalization of Property”

    and

  2. PCS 1006, “Trade-In of Equipment.”

For related information on the disposal of surplus property, see the Property Control System Policies and Procedures Manual—PCS 1002–02, “Disposal of Equipment to Surplus Property.”


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